Which of the Following Items Does Not Appear in the Operating

question 19

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:

Supply

The complete volume of a good or service offered for sale at a specified price range in a certain market area.

Elon Musk

An entrepreneur and business magnate known for his involvement in SpaceX, Tesla, Inc., and several other high-tech ventures.

Normal Profit

The minimum amount of revenue that a company needs to cover both explicit and implicit costs.

Entrepreneurs

Individuals who, rather than working as employees, run a business and assume all the risks and rewards of a given business venture, idea, or good or service offered for sale.