Which of the Following Items Is Reported in the Statement

question 134

Multiple Choice

Which of the following items is reported in the statement of cash flows using the direct method?

• A)Depreciation expense.
• B)Gain on sale of an asset.
• C)Cash received from customers.
• D)Loss on sale of an asset.

---

Definitions:

Par Value

The face value of a bond, stock, or coupon as stated by the issuer, which is the minimum amount at which the security can be sold.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, typically with dividends that are paid out before dividends to common shareholders.

No-par Common Stock

No-par common stock is issued without a par value, and its value is determined by what investors are willing to pay for it, rather than being stated in the company's charter.

Cash Dividend

A payout to shareholders from a company's earnings in the form of cash.