Which of the following would not appear on a statement of cash flows prepared using the direct method?
A)Money received from customers
B)Payments made for interest
C)Net Income
D)Salaries and wages paid to employees

Question

Quizplus · Accepted Answer

The direct method of preparing the statement of cash flows shows the cash inflows and outflows directly. Therefore, net income does not appear on this statement as it is calculated using the accrual basis of accounting. Instead, the direct method would show the cash received from customers and payments made for interest and salaries and wages paid to employees.

Which of the Following Would Not Appear on a Statement