In calculating cash flows from operating activities using the indirect method a loss on the sale of equipment will appear as a(n)

A) subtraction from net income.
B) addition to net income.
C) addition to cash flow from investing activities.
D) subtraction from cash flow from investing activities.

Cash Flows

The total amount of money being transferred into and out of a business, especially considered in terms of liquidity.

Indirect Method

A technique for creating a statement of cash flows where net income is adjusted for non-cash transactions and changes in working capital.

Operating Activities

Operating activities refer to the day-to-day actions a business engages in that are directly related to its primary business purpose, including production, sales, and delivery of services.