Question
A company uses the indirect method to prepare the statement of cash flows. How will a loss from the sale of a building be presented
A company uses the indirect method to prepare the statement of cash flows. How will a loss from the sale of a building be presented on the statement?
| A loss from the sale of a building can be an addition in the investing activities section. | ||
| A loss from the sale of a building can be added to net income in the operating activities section. | ||
| A loss from the sale of a building can be deducted from net income in the operating activities section. | ||
| A loss from the sale of a building can be a deduction in the financing activities section.
When a company uses the direct method to present the statement of cash flows, cash received from the sale of a long-term asset increases the amount of net cash provided by investing activities. True False |
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