All of the following would appear on a direct method statement of cash flows except:
A) cash payments for interest and taxes
B) cash purchase of equipment
C) cash receipts from customers
D) net income

Question

Quizplus · Accepted Answer

Net income is an accounting measure and does not belong on a direct method statement of cash flows. The direct method only shows cash inflows and outflows from operating activities, investing activities, and financing activities, not accounting profits or losses. A, B, and C are all examples of cash flows that would appear on a direct method statement of cash flows.

All of the Following Would Appear on a Direct Method