Which of the following would NOT appear on a statement of cash flows prepared using the direct method?
A)Cash received from sale of assets
B)Cash payments for inventory
C)Loss on sale of assets
D)All of these items would appear

Question

Quizplus · Accepted Answer

The direct method of preparing a statement of cash flows only includes transactions that directly affect cash, such as cash received from customers and cash paid to suppliers. Loss on sale of assets is a non-cash transaction and would not be included in the statement. However, both A and B would appear on the statement.

Which of the Following Would NOT Appear on a Statement