Which of the Following Transactions or Events Should Be Reported

question 150

Multiple Choice

Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method?

• A) Credit sales.
• B) Cash collections from customers.
• C) Depreciation expense.
• D) Cash received from the sale of a building.
• E) Cash received from the sale of treasury shares.

---

Definitions:

Breakthroughs

Significant discoveries or achievements that facilitate major progress in a particular field.

Innovators

Early adopters of new technologies, trends, or products, who are often key to initiating the spread or acceptance of innovations within a larger population.

Late Adopters

Individuals or groups who purchase or try new products or adopt new technologies later than the majority of consumers.

Early Majority

A segment of consumers in the diffusion of innovation theory who adopt new products or services after a careful review once they have been proven by early adopters.