Under the direct method of preparing the statement of cash flows, cash receipts from operating activities do NOT include:
A)collections from customers.
B)receipt of dividends on investments.
C)payments to suppliers.
D)receipt of interest on investments.

Question

Quizplus · Accepted Answer

Payments to suppliers are cash outflows, not cash receipts, and therefore are not included in cash receipts from operating activities.

Under the Direct Method of Preparing the Statement of Cash