Which of the following would appear on a statement of cash flows prepared using the direct method?
A)Cash payments for salaries would appear on the statement.
B)A loss of the sale of equipment would appear on the statement.
C)Amortization expenses would appear on the statement.
D)Depreciation expenses would appear on the statement.

Question

Quizplus · Accepted Answer

The direct method reports actual cash inflows and outflows, so cash payments for salaries would appear on the statement. Choices B, C, and D are all non-cash expenses, so they would not appear directly on the statement prepared using the direct method.

Which of the Following Would Appear on a Statement of Cash