Under the direct method of preparing the statement of cash flows, cash receipts from operating activities do NOT include:
A) payments to suppliers.
B) collections from customers.
C) receipt of interest on investments.
D) receipt of dividends on investments.

Question

Quizplus · Accepted Answer

Cash receipts from operating activities include collections from customers, receipt of interest on investments, and receipt of dividends on investments. Payments to suppliers are considered cash outflows and are included in cash payments for operating activities.

Under the Direct Method of Preparing the Statement of Cash