Which of the following would appear on a statement of cash flows prepared using the direct method?
A) Adjustments to net income
B) Cash payments for salaries
C) Adjustments for gains and losses on sale of property
D) Increase/decrease in current assets

Question

Quizplus · Accepted Answer

The direct method of preparing a statement of cash flows involves listing all the major operating cash receipts and payments during the period. This includes cash payments for salaries, which directly affect the cash flow from operating activities.

Which of the Following Would Appear on a Statement of Cash