Of the following, which has a positive effect on the computation of cash flow from investing using the indirect method?
A) Decrease in Inventory
B) Increase in Accounts Payable
C) Purchase of Equipment
D) Sale of Equipment

Question

Quizplus · Accepted Answer

The indirect method for computing cash flow from investing activities involves adjustments for transactions that affect the company's investments in long-term assets. The sale of equipment is considered a positive cash flow event because it represents an inflow of cash from disposing of a long-term asset, which increases the cash flow from investing activities.

Of the Following, Which Has a Positive Effect on the Computation