Using the Direct Method

question 91

Multiple Choice

Using the Direct Method
For the following question(s) , indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the direct method.
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When using the direct method, where are salaries paid to employees reported on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Noncash investing and financing activity

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Definitions:

New Technologies

Recent advancements or innovations in science and engineering that contribute to changes in society, industry, or daily life.

American Culture

The set of customs, traditions, language, laws, art, and lifestyles that characterize the people of the United States.

Social Lives

The collective social activities and interactions, both in-person and online, among individuals within a community or society.

Consumer Innovations

Developments and improvements in products and services aimed at enhancing the experience and satisfaction of consumers, often driven by technological advancements.