Which of the Following Would Require an Adjustment in the Computation

question 55

Multiple Choice

Which of the following would require an adjustment in the computation of cash flow from operations using the indirect method?

I. Sale of machinery for $50,000 with a net book value of $35,000
II. Purchase of supplies for cash
III. Remittance by customer in payment of goods purchased this accounting period
IV. Acquisition of land with simultaneous issuance of long-term note

• A)I
• B)I and II
• C)I and III
• D)IV

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Definitions:

Collecting Duct

A tube-like structure in the kidney nephrons responsible for the final modification of urine and its concentration by reabsorbing water.

Permeability

The capacity of a material or membrane to allow fluids or gases to pass through it.

Glomerular Filtrate

The fluid that is filtered from the blood through the glomeruli into the Bowman's capsule in the kidneys, initiating urine formation.

Red Blood Cells

The cells in blood responsible for carrying oxygen throughout the body, using the protein hemoglobin to transport oxygen.