Which of the Following Is NOT Included in a Statement

question 18

Multiple Choice

Which of the following is NOT included in a statement of cash flows prepared under the DIRECT method?

• A) cash flows from operating activities
• B) gross profit
• C) cash paid to suppliers and employees
• D) interest paid or received

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Definitions:

Interest

A fee applied to borrowed funds, usually calculated as a percent of the principal amount.

Loan

A sum of money that is borrowed, typically from a financial institution, and is expected to be paid back with interest.

Months

Units of time, each approximately 30 days long, used to measure durations and periods in a year.

Investment

Channeling funds into ventures with the expectancy of generating income or profit.