In a statement of cash flows using the direct method,which of the following would increase reported cash flows from operating activities?
A) Dividends received from investments
B) Gain on sale of equipment
C) Gain on sale of a business segment
D) Sale of treasury stock

Question

Quizplus · Accepted Answer

Dividends received from investments are considered operating cash inflows in the statement of cash flows when using the direct method. This is because they represent returns on investments in the operations of other entities.

In a Statement of Cash Flows Using the Direct Method,which