Which of the Following Would Not Appear in the Operating

question 70

Multiple Choice

Which of the following would not appear in the operating activities section of a statement of cash flows prepared using 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:

Marketable Title

A property title that is free from disputes, liens, or any legal question, making it readily transferable to a new owner.

Warranty of Habitability

A legal requirement that landlords must provide and maintain livable conditions in rented properties.

Chemicals

Substances used in the production of goods or services, often characterized by their compositions and potential reactions.

Encumbrances

Legal claims or liens on property or assets that can affect the ability to transfer ownership or limit its use.