When Using the Indirect Method to Complete the Cash Flows

question 51

Multiple Choice

When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows,what is the proper disposition of a loss on disposal of equipment?

• A)Disregard the loss because it relates to an investing activity.
• B)Disregard the loss because it relates to a financing activity.
• C)Add the loss to net income.
• D)Subtract the loss from net income.

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