Under the direct method,there is no adjustment for non-cashnoncash items or - this includes gains or and losses.

Question

Quizplus · Accepted Answer

Under the direct method, non-cash items such as depreciation and amortization are included in the operating activities section of the cash flow statement without adjustment. Similarly, gains or losses on the sale of assets are also reported in the investing or financing activities section without adjustment.

Under the Direct Method,there Is No Adjustment for Non-Cashnoncash Items