Which of the Following Items Does Not Appear in the Statement

question 196

Multiple Choice

Which of the following items does not appear in the statement of cash flows under the direct method?

• A) Cash payments to suppliers
• B) Cash collections from customers
• C) Depreciation Expense
• D) Cash from the sale of equipment

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

General Ledger Account

A comprehensive set of accounts that provides a complete record of all financial transactions of a company.

Allowance Method

An accounting technique used to estimate and account for potential uncollectable debts or credit sales.

Uncollectible Receivables

Debts owed to a company that are considered unlikely to be paid by the debtor, often written off as bad debts.