Which of the following would require an adjustment in the computation of cash flow from operations using the indirect method?

Which of the following would require an adjustment in the computation of cash flow from operations using the indirect method? 



I. Depreciation expense
II. Loss on sale of asset
III. Sale of services to costumers for cash
IV. Utility bill received and paid in cash


A. I
B. I and II
C. I and III
D. IV



Answer: B


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