When using the indirect method to determine operating cash flows,where is the gain from selling a long-term investment recognized? (The proceeds from selling the investment are considered separately. )
A)Operating activity
B)Investing activity
C)Financing activity
D)Noncash investing or financing activity
E)Not reported on the statement of cash flows

Question

Quizplus · Accepted Answer

In the indirect method, gains from selling long-term investments are subtracted from net income in the operating activities section because they are included in net income but are not part of operating cash flows.

When Using the Indirect Method to Determine Operating Cash Flows,where