When using the direct method, which of the following should be reported as a source of cash from operating activities?
A) Sale of treasury shares.
B) Collections from customers.
C) Credit sales.
D) Depreciation expense.
E) Sale of a building.

Question

Quizplus · Accepted Answer

Collections from customers are a source of cash from operating activities because they represent the inflow of cash from the sale of goods or services.

When Using the Direct Method, Which of the Following Should