All of the following might appear on an indirect method statement of cash flows except:
A) decrease in inventory
B) depreciation expense
C) interest received on notes receivable
D) loss on sale of capital assets

Question

Quizplus · Accepted Answer

Interest received on notes receivable would appear on the operating activities section of the direct method statement of cash flows, not on the indirect method statement. The other options (decrease in inventory, depreciation expense, and loss on sale of capital assets) are all examples of items that would typically appear on an indirect method statement of cash flows.

All of the Following Might Appear on an Indirect Method