Which of the Following Would Appear on a Statement of Cash

question 192

Multiple Choice

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

• A)Cash payments for salaries would appear on the statement.
• B)A loss of the sale of equipment would appear on the statement.
• C)Amortization expenses would appear on the statement.
• D)Depreciation expenses would appear on the statement.

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Definitions:

Cost of Goods Sold

The expenses directly associated with the manufacturing of products a company sells, such as materials and labor.

Customer Returns

Goods or merchandise sent back to the retailer or manufacturer by the purchaser due to defects, dissatisfaction, or other reasons.

Accounting Equation

The core formula of double-entry accounting: Assets equal Liabilities plus Equity, which shows the link between a firm's assets and the stakes held in those assets.

Accounts Receivable-Digitec

The money owed to Digitec by its customers for goods or services that have been delivered or used but not yet paid for.