Which of the following would not appear in the operating activities section of a statement of cash flows prepared under the direct method?
A) Cash receipts from customers
B) Cash paid for income taxes
C) Gain on disposal of equipment
D) Cash paid to employees

Question

Quizplus · Accepted Answer

The gain on disposal of equipment would be reported in the investing activities section of the statement of cash flows prepared under the direct method. The operating activities section would include cash receipts and cash payments related to regular business operations, such as cash receipts from customers, cash paid to employees, and potentially cash paid for income taxes.

Which of the Following Would Not Appear in the Operating