Which of the following adjustments would be in error when computing cash from investing using the indirect method?
A) Increase cash when purchasing equipment
B) Increase cash when selling equipment
C) Decrease cash when purchasing land
D) None of the above

Question

Quizplus · Accepted Answer

When using the indirect method to compute cash from investing activities, purchasing equipment would result in a decrease in cash, not an increase. This is because cash is used to buy the equipment, representing an outflow of cash.

Which of the Following Adjustments Would Be in Error When