Which of the Following Items Does NOT Appear in the Cash

question 95

Multiple Choice

Which of the following items does NOT appear in the cash flow statement 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:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where demand and supply are equal.

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount that producers are willing to sell, thereby achieving equilibrium in the market.

Law of Demand

The principle stating that, all else being equal, as the price of a good increases, its demand falls and vice versa.

Market for Pizza

An example of a niche market, focused specifically on the buying and selling of pizza, influenced by consumer preferences and economic factors.