Which of the Following Is Added to Net Income as an Adjustment

question 100

Multiple Choice

Which of the following is added to net income as an adjustment under the indirect method of preparing the statement of cash flows?

• A) Salaries payable decrease.
• B) Gain on the sale of land.
• C) Loss on the sale of equipment.
• D) Accounts receivable increase.

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Definitions:

Chattels

Personal property or movable possessions, as opposed to real property which includes land and buildings.

Intangible Property

Assets that do not have a physical presence yet hold value, such as intellectual property, copyrights, patents, and trademarks.

Chose in Action

A personal right to property which can only be claimed or enforced through legal action, not by taking physical possession.

Intellectual Property

Refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names, and images used in commerce.