Which of the Following Would Appear on a Statement of Cash

question 82

Multiple Choice

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

• A)A loss of the sale of equipment would appear on the statement.
• B)Cash payments for salaries 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 direct costs attributable to the production of the goods sold by a company. This includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good.

Factory Labor Costs

Expenses related to employing workers in a manufacturing setting, including wages, benefits, and related taxes.

Direct Labor Cost

The cost of wages and benefits for employees directly involved in the production of goods or services.

Work in Process Inventory

The value of materials, labor, and overhead costs for products that are partially completed in the manufacturing process.