Asked by
Taylor Ellsworth
on Nov 14, 2024Verified
In calculating cash flows provided (used) by operating activities using the indirect method, a gain on the sale of equipment is
A) added to net income.
B) deducted from net income.
C) ignored because it does not affect cash.
D) not reported on a statement of cash flows.
Sale Of Equipment
The act of selling off machinery, tools, or devices used in production or office operations, often recorded as a cash inflow in financial accounts.
Operating Activities
Day-to-day actions conducted by a business to generate income, such as sales, providing services, and other core business operations.
- Identify the handling of profits and losses stemming from asset sales within the cash flow statement.
Verified Answer
JV
Learning Objectives
- Identify the handling of profits and losses stemming from asset sales within the cash flow statement.