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:

Animal Rescue Agency

An organization dedicated to rescuing and caring for animals in distress or peril.

ASU 2016-14

An update issued by the Financial Accounting Standards Board (FASB) aimed at improving the way not-for-profit organizations present their financial statements.

GAAP

Generally Accepted Accounting Principles, which are a set of accounting standards and procedures used to prepare financial statements in the US.