Which of the following adjustments would NOT be made to net income when computing cash from operating activities?
A) add an increase in Accrued Interest Payable
B) deduct the purchase of store equipment
C) add the decrease in Merchandise Inventory
D) add the reduction in Accounts Receivable

Question

Quizplus · Accepted Answer

The purchase of store equipment is a non-operating activity and would be deducted when computing cash from investing activities, not operating activities. The other options are adjustments to net income that would be made when computing cash from operating activities.

Which of the Following Adjustments Would NOT Be Made to Net