Cash Flow from Operations Includes All of the Following Adjustments

question 14

Multiple Choice

Cash flow from operations includes all of the following adjustments to net income EXCEPT

• A) purchases of new equipment.
• B) depreciation.
• C) increase or decrease in current liabilities.
• D) increase or decrease in current inventory.

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Definitions:

Warranty of Merchantability

An implied guarantee that a product will meet the standard quality and performance expectations for goods of its kind.

Garage Sale

An informal, often temporary sale of used goods by private individuals, typically held at the seller's residence.

Express Warranty

A written or spoken promise from a seller about the quality or functionality of a product.

Salesperson's Statement

A formal or informal communication by a salesperson, intended to persuade or inform potential buyers about a product or service.