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

Question

Quizplus · Accepted Answer

Cash flows reported as operating activities include cash receipts from revenues,including interest and dividend revenue and cash payments for expenses,including interest expense.For a business,long-term assets are investments.Cash flows related to acquiring or disposing of long-term assets are therefore reported in the investing activities section of the statement of cash flows.

Which of the Following Is Not an Adjustment When Arriving