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:

Public Good

A good or service offered to every member of a society for free, provided by either governmental bodies or private entities or individuals, without seeking to make a profit.

Demand Curve

An illustrated chart that displays the connection between a product's price and the amount consumers are willing to buy at those price levels.

Individual Demand

The amount of a product or service that a single consumer is willing and able to purchase at various prices, holding all else constant.

Society Demand

This refers to the total demand for various goods and services by all members of a society or community, often influenced by factors like price, income levels, and societal norms.