Which of the Following Adjustments to Convert Net Income to Net

question 86

Multiple Choice

Which of the following adjustments to convert net income to net cash provided by operating activities is not added to net income?

• A) Gain on Sale of Equipment
• B) Depreciation Expense
• C) Patent Amortization Expense
• D) Depletion Expense

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Definitions:

Required Production

The quantity of products that must be manufactured or produced to meet customer demand.

Units

A measure of quantity used to express the amount of product made or available.

Unit Product Cost

The total cost incurred to produce, manufacture, or acquire a product, divided by the number of units produced, representing the cost per individual unit.

Estimated

An approximation or educated guess based on available information or data.