When equipment is sold at a loss:
A)The net proceeds are shown in the investing section.
B)The book value of the asset is shown in the investing section.
C)The book value of the asset is shown in the investing section,and the loss is shown in the operating section.
D)The net proceeds are shown in the financing section.

Question

Quizplus · Accepted Answer

The net proceeds from the sale of equipment are reported in the investing section of the cash flow statement, regardless of whether the sale results in a gain or a loss.

When Equipment Is Sold at a Loss