Which of the following items will NOT appear in the operating activities section of the statement of cash flows when using the direct method?
A)Collections from customers
B)Depreciation expense
C)Cash paid for income taxes
D)Payments to employees
E)Payments to suppliers

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash adjustment and therefore does not appear in the operating activities section when using the direct method. The other options (A, C, D, and E) are all cash transactions that would appear in the operating activities section.

Which of the Following Items Will NOT Appear in the Operating