Which of the Following Would Not Be a Cash-Paid Item

question 16

Multiple Choice

Which of the following would not be a cash-paid item using the direct method for reporting operating activities?

• A) Depreciation expense
• B) Cash paid to suppliers
• C) Cash paid for income taxes
• D) Cash paid for interest

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Definitions:

Endorsement

An amendment or addition to an existing document or policy, especially in the context of insurance, or it can also mean the act of publicly supporting a product, service, or person.

Transferable

Characteristic of an asset or right that allows it to be passed from one party to another, often through sale or trade.

Purpose

The reason for which something is done or created, or for which something exists; intent or objective.

Instrument

A legal document formalizing an agreement or right, such as contracts, wills, or deeds.