Question

The gain on sale of equipment is deducted from net income to arrive at operating cash flows because a.the sale of long-term assets is an operating activity. b.the gain reveals the total cash received. c.all of the cash received from the sale is reported in the operating section. d.All of these. e.None of these.

Answer 1

Answer:

e. None of these.

Explanation:

The gain on sale of equipment is deducted from net income to arrive at operating cash flows because cash collections from customers were less than the revenues reported.