Which of the following items does not appear in the operating activities section of the statement of cash flows prepared under the direct method?
A)Cash payments to suppliers
B)Cash collections from customers
C)Depreciation expense
D)Cash payments for interest

Question

Quizplus · Accepted Answer

Depreciation expense does not appear in the operating activities section of the statement of cash flows prepared under the direct method because it is a non-cash item. The direct method only includes cash transactions in the operating activities section, such as cash payments to suppliers and cash collections from customers. Cash payments for interest are also included in the operating activities section under the direct method.

Which of the Following Items Does Not Appear in the Operating