When using the direct method,how are salaries paid to employees reported on the statement of cash flows?
A)As an operating activity
B)As an investing activity
C)As a financing activity
D)As a noncash investing and financing activity

Question

Quizplus · Accepted Answer

Salaries paid to employees are a part of the operating expenses of a business and are therefore reported as an operating activity on the statement of cash flows when using the direct method.

When Using the Direct Method,how Are Salaries Paid to Employees