An Increase in the Plant and Equipment Account of $100,000

Multiple Choice

An increase in the plant and equipment account of $100,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

A) an addition to net income of $100,000 in order to arrive at net cash provided by operating activities.
B) a deduction from net income of $100,000 in order to arrive at net cash provided by operating activities.
C) an addition of $100,000 under investing activities.
D) a deduction of $100,000 under investing activities.