Asked by
Nathan Banks
on Nov 14, 2024
Verified
In calculating cash flows provided (used) by operating activities using the indirect method, a loss on the sale of equipment will appear as a(n)
A) subtraction from net income.
B) addition to net income.
C) addition to cash flow from investing activities.
D) subtraction from cash flow from investing activities.
Sale Of Equipment
The process of disposing of fixed assets, such as machinery, for cash or other compensation.
Operating Activities
These are the core activities that generate revenue and involve expenses for a company, including sales and service provision.
- Recognize the treatment of losses and gains from the sale of assets in the statement of cash flows.
Verified Answer
DU
Learning Objectives
- Recognize the treatment of losses and gains from the sale of assets in the statement of cash flows.