Which of the Following Is Not an Adjustment When Arriving

question 28

Multiple Choice

Which of the following is not an adjustment when arriving at net cash flow 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:

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional law.

Fourteenth Amendment

An amendment to the U.S. Constitution that grants citizenship to all persons born or naturalized in the United States and ensures equal protection under the law.

Due Process Clause

A legal principle that guarantees fair treatment through the normal judicial system, especially as a citizen's entitlement.

Equal Protection

The principle under the Constitution that requires states to govern impartially, not discriminating between different groups of people.