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 sale of equipment
D) Cash paid to employees

Question

Quizplus · Accepted Answer

The gain on sale of equipment would appear in the investing activities section of the statement of cash flows prepared under the direct method, as it is a non-operating activity. The operating activities section would include cash receipts from customers, cash paid to employees, and possibly cash paid for income taxes (depending on the tax laws in the company's jurisdiction).

Which of the Following Would Not Appear in the Operating