Using the indirect method, which of the following adjustments to convert net income to net cash provided by operating activities is not added to net income?
A) gain on Sale of Equipment
B) Depreciation Expense
C) loss on Sale of Equipment
D) amortization of Bond Discount

Question

Quizplus · Accepted Answer

Gains on the sale of equipment are subtracted from net income because they are non-cash items that increase net income but do not affect cash flow from operating activities.

Using the Indirect Method, Which of the Following Adjustments to Convert