Which of the following items would be reported on a statement of cash flows using the indirect method,but not on a statement prepared using the direct method?
A)Cash paid for dividends.
B)Cash received from stock issuances.
C)Depreciation expense.
D)Cash paid for purchase of treasury stock.

Question

Quizplus · Accepted Answer

The indirect method begins with net income and adjusts it by eliminating effects of items that do not involve cash (like depreciation),and including items that do have cash effects.The direct method directly converts revenues to cash receipts and expenses to cash payments and does not include any noncash expenses such as depreciation.

Which of the Following Items Would Be Reported on a Statement