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

Distinguish between movements along a curve and shifts of the curve.

Explain how changes in consumer tastes affect demand.

Describe how production costs influence supply.

Understand the impact of industry changes on supply.

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Definitions:

Inventory

Materials and goods a business holds for the purpose of resale or as input in its production process.

Debt-to-Equity Ratio

A measure of a company's financial leverage, determined by dividing its total liabilities by stockholders' equity.

Debt to Equity Ratio

A financial ratio indicative of the relative proportion of shareholders' equity and debt used to finance a company's assets.

Current Liabilities

Financial obligations that are due within one year or within the normal business cycle.