Which of the Following Would NOT Appear on a Statement

question 116

Multiple Choice

Which of the following would NOT appear on a statement of cash flows prepared using the direct method?

• A) Collections from customers
• B) Payments to suppliers
• C) Interest received
• D) Increase/decrease in current liabilities

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Definitions:

Straight-Line Depreciation

An approach to evenly spread an asset's purchase price over the span of its useful life.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the strategic objectives of an organization, such as acquiring new machinery or expanding operations.

Incremental Sales

Additional sales generated by a specific business activity or decision, such as a marketing campaign or product launch.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct labor and materials costs.