Which of the following would not be an adjustment to net income using the indirect method?
A) Depreciation Expense
B) An increase in Prepaid Insurance
C) Amortization Expense
D) An increase in Land

Question

Quizplus · Accepted Answer

An increase in Land does not affect net income, as it is a non-depreciable asset and is not subject to amortization. The other options (Depreciation Expense, Amortization Expense, and an increase in Prepaid Insurance) all represent adjustments to net income that are commonly made using the indirect method of preparing the statement of cash flows.

Which of the Following Would Not Be an Adjustment to Net