Which of the following items does not appear in the statement of cash flows under the direct method?
A) Cash payments to suppliers
B) Cash collections from customers
C) Depreciation Expense
D) Cash from the sale of equipment

Question

Quizplus · Accepted Answer

Depreciation Expense does not appear in the statement of cash flows under the direct method because it is a non-cash expense. The direct method only includes items that directly affect cash, such as cash receipts from customers and cash payments to suppliers and employees.

Which of the Following Items Does Not Appear in the Statement