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:

Resources

Assets, materials, and inputs needed for the production of goods and services, including time, labor, capital, and natural resources.

Excess Demand

A market condition where the quantity demanded of a good exceeds the quantity supplied, leading to shortages.

Good

A tangible item or product that fulfills a need or desire and is available for purchase.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers from high prices.