Which of the Following Is Not an Adjustment When Arriving

question 107

Multiple Choice

Which of the following is not an adjustment when arriving at net cash provided byflow from operating activities under the indirect method?

• A) Noncash expenses such as depreciation expense
• B) Gains and losses on the sale of long-term assets
• C) Changes in a company's long-term assets
• D) Changes in noncash current asset and current liability accounts

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Definitions:

Effective Rate

The actual interest rate an investor receives after the effects of compounding interest are taken into account.

Compounding Interval

The period of time at the end of which interest is added to the principal balance of an investment or loan.

Interest

The charge for borrowing money or the return on invested capital, generally expressed as a percentage rate.

Furniture

Movable objects intended to support various human activities such as seating, eating, and sleeping, as well as to hold objects or store items.