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

Question

Quizplus · Accepted Answer

Changes in a company's long-term assets are not an adjustment when arriving at net cash flow from operating activities under the indirect method. Adjustments include adding back noncash expenses such as depreciation expense and subtracting gains or adding losses on the sale of long-term assets. Additionally, changes in noncash current asset and current liability accounts are also adjusted.

Which of the Following Is Not an Adjustment When Arriving