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 is a non-cash expense and therefore does not appear in the operating activities section of the cash flow statement under the direct method. The direct method focuses on the actual cash flows from operating activities, such as cash received from customers and cash paid to suppliers and employees.

Which of the Following Items Does Not Appear in the Operating