Asked by Samantha Stoner on May 14, 2024
Verified
When preparing the operating activities section of the statement of cash flows using the indirect method,non-operating gains are added to net income.
Non-Operating Gains
Income from activities not related to a company's core operations such as profits from investments, property sales, or currency exchange.
- Obtain insights into the handling of current assets and liabilities adjustments within the indirect method.
Verified Answer
CJ
Chang Jing YeeMay 16, 2024
Final Answer :
False
Explanation :
Non-operating gains are not included in the operating activities section of the statement of cash flows using the indirect method. They are typically included in the investing or financing activities section depending on the nature of the gain.
Learning Objectives
- Obtain insights into the handling of current assets and liabilities adjustments within the indirect method.
Related questions
When Preparing the Operating Activities Section of the Statement of ...
When Preparing the Operating Activities Section of the Statement of ...
When Preparing the Operating Activities Section of the Statement of ...
When Preparing the Operating Activities Section of the Statement of ...
Computing Operating Cash Flows by Adjusting Accrual-Based Net Income Is ...