Under the direct method of preparing the statement of cash flows,cash payments from operating activities do NOT include:
A)payments to suppliers.
B)payments to employees.
C)payment of dividends.
D)payment of interest.

Question

Quizplus · Accepted Answer

Cash payments from operating activities under the direct method include payments to suppliers and employees, as well as payments for interest. However, dividends are classified as cash flows from financing activities and are not included in cash payments from operating activities under the direct method.

Under the Direct Method of Preparing the Statement of Cash