QUESTION 1 The sale of land at a gain would be shown on the statement of cash fl

Question

QUESTION 1 The sale of land at a gain would be shown on the statement of cash flows prepared under the indirect method in which of the following manners? The cash received would be shown O As an adjustment to net income and the gain would not appear on the statement of cash fows O Under Investing Activities and the gain would not appoar on the statoment of cash flows O Under Investing Activities and the gain would be added to net income. O Under Investing Activities and the gain would be deducted from net income

Explanation / Answer

D.Under investing activities and the gain would be deducted from net income.

Since the gain on sale of land would increase the net income, the gain would be deducted from the amount of net income.

Since sale of land is an investing activity, the same would be reflected under investing activity.

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