Using the direct method,which of the following would appear on the statement of cash flows?
A)Loss on sale of equipment.
B)Cash received from issuance of long-term debt.
C)Net income.
D)Depreciation of equipment.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The direct method of preparing a statement of cash flows presents the specific cash flows associated with sources and uses of cash. Cash received from the issuance of long-term debt is a financing activity that directly affects cash, making it reportable on the statement of cash flows under the direct method.

Using the Direct Method,which of the Following Would Appear on the Statement