Which transactions is not reported as an adjustment

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Problem 1: Which of the following transactions is NOT reported as an adjustment to net income when the indirect method is used to compute net cash flows from operating activities?

Option 1: Payment of dividends in cash

Option 2: A change in accounts receivable

Option 3: Depreciation expense

Option 4: A change in a prepaid expense

Problem 2: Under US GAAP, which of the following would not be a component of the investing activities of the Statement of Cash Flows?

Option 1: Sale of land

Option 2: Purchase of bonds.

Option 3: Buying a team.

Option 4: Dividend collection

Reference no: EM132622818

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