Using the Indirect Method, Which of the Following Adjustments to Convert

question 24

Multiple Choice

Using the indirect method, 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)loss on Sale of Equipment
• D)amortization of Bond Discount

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Definitions:

Transferred Costs

Expenses that are moved from one department to another within an organization, or from one stage of production to another, often reflecting internal transactions.

Multidepartment Process

A workflow or operation that involves multiple departments within a business, often requiring cross-functional collaboration to achieve a common goal.

Transferred In Costs

Costs related to products that have been partially produced in one department and then moved to another department for further processing.

Weighted Average Method

An inventory costing method that calculates the cost of ending inventory and the cost of goods sold based on the average cost of all units available for sale during the period.