Under the Direct Method of Determining Net Cash Provided by Operating

Multiple Choice

Under the direct method of determining net cash provided by operating activities on the statement of cash flows, a gain on the sale of plant assets would be:

A) added to the amount of operating expenses reported under the accrual basis.
B) deducted from the amount of operating expenses reported under the accrual basis.
C) deducted from the amount of sales reported under the accrual basis.
D) totally ignored since the gain is not a part of sales, cost of goods sold, or operating expenses.