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:

Reward System

A structured plan designed to provide benefits, either monetary or non-monetary, to individuals for achieving specific goals or benchmarks.

Autocratic

A leadership style characterized by individual control over all decisions and little input from group members.

Hierarchical

Related to a system or organization in which people or groups are ranked one above the other according to status or authority.