Under the direct method of preparing the statement of cash flows,all of the following would be reported under operating activities EXCEPT:
A)collections from customers.
B)interest received on notes receivable.
C)dividends received on investments in stock.
D)cash proceeds on sale of long-term investments.

Question

Quizplus · Accepted Answer

Cash proceeds on sale of long-term investments would be reported under investing activities, not operating activities. The other options are typical operating activities that would be reported under this section.

Under the Direct Method of Preparing the Statement of Cash