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:

Benefits

Advantages or payments made to employees, members of insurance policies, or other eligible parties, often in the form of health insurance, retirement plans, or disability coverage.

Tax Shelter

An investment strategy or financial arrangement designed to reduce, defer, or eliminate tax liabilities.

Deferred Taxes

Tax liabilities or assets that arise due to differences between the financial accounting and tax treatment of transactions, recognized in corporate financial statements.

Investment Earnings

The return on investment, including income and capital gains.