Which of the following would require an adjustment in the computation of cash flow from operations using the indirect method?

I. Sale of machinery for $50,000 with a net book value of $35,000
II. Purchase of supplies for cash
III. Remittance by customer in payment of goods purchased this accounting period
IV. Acquisition of land with simultaneous issuance of long-term note

A)I
B)I and II
C)I and III
D)IV

Question

Which of the following would require an adjustment in the computation of cash flow from operations using the indirect method?

I. Sale of machinery for $50,000 with a net book value of $35,000
II. Purchase of supplies for cash
III. Remittance by customer in payment of goods purchased this accounting period
IV. Acquisition of land with simultaneous issuance of long-term note

A)I
B)I and II
C)I and III
D)IV

Quizplus · Accepted Answer

The sale of machinery (I) and the remittance by customer (III) would require adjustments in the computation of cash flow from operations using the indirect method.

Which of the Following Would Require an Adjustment in the Computation