A loss on the sale of machinery should be reported on the statement of cash flows as:
A. An adjustment to net income under the indirect method.
B. An operating activity under the direct method.
C. An investing activity cash outflow.
D. A noncash investing activity.
Answer:A
A loss on the sale of machinery should be reported on the statement of cash flows as:
A. An adjustment to net income under the indirect method. B. An operating activity under the direct method. C. An investing activity cash outflow. D. A noncash investing activity.