Which of the Following Items Will NOT Appear in the Operating

question 55

Multiple Choice

Which of the following items will NOT appear in the operating activities section of the statement of cash flows when using the direct method?

• A)Collections from customers
• B)Depreciation expense
• C)Cash paid for income taxes
• D)Payments to employees
• E)Payments to suppliers

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Definitions:

Disclosure Statements

Documents that provide essential information about a business or financial product, legally required to be shared with potential investors or customers.

Advertising Fee

A charge incurred for the promotion of products or services through various media channels to target potential customers.

Franchisor

The party in franchising that owns the overarching company, trademarks, and products or services being offered, which grants the right for a franchisee to operate under the business's name.

Franchisee

A party that acquires the rights to use a company's trademark and business model to conduct business under that name.