Which of the following items does NOT appear in the cash flow statement under the direct method?
A) cash payments to suppliers
B) cash collections from customers
C) depreciation expense
D) cash from the sale of equipment

Question

Quizplus · Accepted Answer

Depreciation expense does not appear in the cash flow statement under the direct method because it is a non-cash expense. The direct method of cash flow statement focuses on the actual cash transactions like cash received from customers and cash paid to suppliers, not on non-cash accounting entries.

Which of the Following Items Does NOT Appear in the Cash