Essay
For each of the following items:
1. identify whether the adjustment is an addition or a subtraction in preparing the statement of cash flows using the indirect method, and
2. state which section of the statement of cash flows the addition or subtraction should be reported.
a. amortization of patent
b. bond premium amortization
c. increase in deferred taxes (hint: a liability)
d. sale of equipment
Correct Answer:
Verified
Correct Answer:
Verified
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