Which would go into the operating activities section of a statement of cash flows using the direct method?
A) Depreciation expense
B) Cash paid for inventory
C) Selling of plant, property and equipment
D) All of the above

Question

Quizplus · Accepted Answer

Cash paid for inventory is considered an operating activity because it relates directly to the core business operations of purchasing goods for sale. The direct method of the cash flow statement lists actual cash inflows and outflows from operating activities, including payments to suppliers for inventory.

Which Would Go into the Operating Activities Section of a Statement