Which of the following would not appear in the operating activities section of a statement of cash flows prepared using 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 not appear in the operating activities section of a statement of cash flows prepared using the direct method because it is related to investing activities, not operating activities. The direct method focuses on specific cash flows from operating activities, such as cash received from customers and cash paid to suppliers and employees. Gains or losses from the sale of equipment are considered investing activities and are handled separately.

Which of the Following Would Not Appear in the Operating