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

---

Definitions:

Disjunction

A grammatically correct construction used to assert that one or both of two statements are true.

Truth Table

A mathematical table used in logic to determine the truth value of logical expressions based on their variables' truth values.

Imply

To suggest or express something indirectly or covertly, leaving the full meaning to be inferred by the audience.

Tautology

A statement that is necessarily true because of the meanings of the words.