Which of the Following Items Does Not Appear in the Operating

question 63

Multiple Choice

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

• A)Cash payments to suppliers
• B)Cash collections from customers
• C)Depreciation expense
• D)Cash payments for interest

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Definitions:

Duopoly

A market structure characterized by two dominant firms controlling the majority of the market share.

Stackelberg Leader

A firm in a duopoly that maximizes its profit by making the first move and setting its output level, anticipating the response of the follower firm.

Maximize Profits

The process of making the most favorable decisions to achieve the highest possible earnings after expenses.

Conjectural Variation

An expectation of how rival firms will react to a change in the quantity and price of goods a firm markets.