Asked by
Jasmyn Dominguez
on Nov 14, 2024Verified
In calculating cash flows provided (used) by operating activities using the indirect method, a loss 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
A transaction where a business disposes of equipment assets, which may result in a gain or loss reflected in the financial statements.
Operating Activities
Operating activities involve the primary activities that a business engages in to generate earnings, including production, sales, and delivery of its goods or services.
- Comprehend the processing of gains and losses from asset disposals in the cash flow statement.
Verified Answer
BP
Learning Objectives
- Comprehend the processing of gains and losses from asset disposals in the cash flow statement.