Using the indirect method, which of the following would not be an adjustment to net income?
A) depreciation expense
B) an increase in prepaid insurance
C) an increase in inventories
D) an increase in Land

Question

Quizplus · Accepted Answer

An increase in Land is not an adjustment to net income in the indirect method; it is a capital expenditure affecting the investing section of the cash flow statement.

Using the Indirect Method, Which of the Following Would Not