Which of the following would appear on a statement of cash flows prepared using the direct method?
A)Interest received on a loan would appear on the statement of cash flows.
B)Collections from customers would appear on the statement of cash flows.
C)Cash payment of dividends would appear on the statement of cash flows.
D)All of the above would appear on the statement of cash flows.

Question

Quizplus · Accepted Answer

All of the listed items would appear on a statement of cash flows prepared using the direct method. The direct method reports cash inflows and outflows from operating activities based on the actual cash transactions during the accounting period. Therefore, interest received on a loan and collections from customers would be reported as cash inflows, while cash payments for dividends would be reported as a cash outflow.

Which of the Following Would Appear on a Statement of Cash