On the Statement of Cash Flows, a loss on the sale of property, plant and...

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Accounting

On the Statement of Cash Flows, a loss on the sale of property, plant and equipment is added in the operating section. This is because:

  1. The company has received cash for the property, plant and equipment.
  2. This loss has brought in cash.
  3. This loss is a non-cash item.
  4. This loss cannot be recognized due to conservatism.

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