Which of the Following Would Appear on a Statement of Cash

question 124

Multiple Choice

Which of the following would appear on a statement of cash flows prepared using the direct method?

• A) Adjustments to net income
• B) Cash payments for salaries
• C) Adjustments for gains and losses on sale of property
• D) Increase/decrease in current assets

---

Definitions:

Repay

To pay back or return money that was borrowed from an individual, institution, or entity.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may not be collectible.

Factoring Proceeds

The cash received by a company from selling its accounts receivable to a third party, often at a discount, to immediately improve cash flow.

Noncollections

Amounts due to a company for goods or services provided that have not been collected.