Which of the Following Items Would $\textbf{ not }$

question 29

Multiple Choice

Which of the following items would $\textbf{ not }$ be included in the calculation of cash flows provided by operating activities using the indirect method?

• A)Purchasing supplies on account
• B)Net income
• C)Depreciation expense
• D)Gain on the sale of equipment

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Definitions:

Note Dated

Note dated refers to the date on which a promissory note or other financial document was issued or signed, marking the start of when the agreement takes effect.

Accounts Receivable-P. Long

Amounts due to a company for goods or services delivered or used but not yet paid for by its customers, typically within a period longer than one year.

Dishonors

A term often related to financial instruments (like checks or promissory notes) that are not fulfilled as agreed upon, typically due to insufficient funds.

Collection Expected

This refers to the amount of money a business anticipates receiving from its customers who have purchased goods or services on credit.