When Using the Indirect Method, the Gain from Selling a Long-Term

question 28

Multiple Choice

When using the indirect method, the gain from selling a long-term investment is recognized in which of the following?

• A) In the operating activity section and the investing activity section of the statement of cash flows.
• B) In the financing activity section of the statement of cash flows.
• C) In the noncash investing or financing activity supplemental section of the statement of cash flows.
• D) Gains are not recognized in the statement of cash flows under the indirect method.

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