When presenting decreases in long-term investments in the investing activities section of the statement of cash flows,the amount reflected equals the amount of the gain(s)or loss(es)from the transaction(s).

Question

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The amount reflected in the investing activities section of the statement of cash flows for decreases in long-term investments does not necessarily equal the amount of the gain(s) or loss(es) from the transaction(s). The amount reflected is the net cash outflow from the sale or disposal of the investment, which can be different from the gain or loss. The gain or loss is reported separately in the income statement.

When Presenting Decreases in Long-Term Investments in the Investing Activities