Under the indirect method to prepare the statement of cash flows,a loss on the sale of long-term assets is added to net income when calculating Net Cash Provided by Operating Activities.

Question

Quizplus · Accepted Answer

A loss on the sale of long-term assets is a non-cash expense and is added back to net income when calculating Net Cash Provided by Operating Activities under the indirect method.

Under the Indirect Method to Prepare the Statement of Cash