Which of the Following Would Not Appear in the Operating

question 11

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 sale of equipment
• D) Cash paid to employees

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Definitions:

Employee Loyalty

the devotion and commitment an employee has towards their employer and company, often reflected in their willingness to stay with the company long term.

Job Satisfaction

The level of contentment employees feel about their work, considering factors like job environment, salary, and duties.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees, which can impact organizational performance and morale.

Direct Sourcing

A recruitment strategy where companies use their own resources and efforts to find candidates for job positions, bypassing external recruiting services.