Which of the Following Would Not Appear in the Operating

question 105

Multiple Choice

Which of the following would not appear in the operating activities section of a statement of cash flows prepared under the direct method?

• A) Cash receipts from customers
• B) Cash paid for income taxes
• C) Gain on disposal of equipment
• D) Cash paid to employees

---

Definitions:

FIFO

FIFO (First-In, First-Out) is an inventory valuation method where goods first purchased or produced are the first ones sold.

Periodic

Occurring or repeating at regular intervals.

Inventory Record

Documentation that tracks the quantities and value of products a company holds for sale.

Social Learning Theory

Posits that people learn attitudes, beliefs, and behaviors through social interaction.