Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, a loss on the sale of an asset would be added to net income.

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Prabha Prasad · Accepted Answer

Final Answer : True, Explanation :  This is because a loss on the sale of an asset is a non-cash expense, so it is added back to net income to adjust for the fact that it did not actually decrease cash flow.

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, a loss on the sale of an asset would be added to net income.

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