Under the direct method,cash payments to suppliers would be reported in the operating section of a cash flow statement.

Question

Quizplus · Accepted Answer

The direct method of preparing a cash flow statement categorizes cash receipts and payments into operating activities (including cash payments to suppliers), investing activities, and financing activities. Therefore, cash payments to suppliers would be reported in the operating section under the direct method.

Under the Direct Method,cash Payments to Suppliers Would Be Reported