When using the direct method, how are salaries paid to employees reported on the statement of cash flows?
A) Operating activity
B) Investing activity
C) Financing activity
D) Noncash investing and financing activity

Question

Quizplus · Accepted Answer

Salaries paid to employees are a part of operating activities and, therefore, are reported in the operating activities section of the statement of cash flows when the direct method is used.

When Using the Direct Method, How Are Salaries Paid to Employees