question 14 when the indirect method is used to calculate net cash provided (used) by operating activities…

question 14 when the indirect method is used to calculate net cash provided (used) by operating activities, if equipment is sold at a gain, the amount of the gain is added in the operating activities section. amount of the gain is deducted in the operating activities section. sale proceeds received are deducted in the operating activities section. sale proceeds received are added in the operating activities section.

question 14 when the indirect method is used to calculate net cash provided (used) by operating activities, if equipment is sold at a gain, the amount of the gain is added in the operating activities section. amount of the gain is deducted in the operating activities section. sale proceeds received are deducted in the operating activities section. sale proceeds received are added in the operating activities section.

Answer

Brief Explanations:

When using the indirect method for the statement of cash - flows, gains on the sale of equipment are non - operating items. Operating cash flows should reflect only cash flows from normal business operations. Since the gain is not part of operating activities, it is deducted in the operating activities section to adjust net income to cash provided by operating activities.

Answer:

C. amount of the gain is deducted in the operating activities section.