Which of the following would appear in both the operating activities section of the direct method format and the reconciliation of earnings to net operating cash flow format?
A) Sale of cash equivalents at a gain
B) Sale of cash equivalents at cost
C) Dividends received on equity method investments
D) Collection of an account receivable previously written off

Question

Quizplus · Accepted Answer

Dividends received on equity method investments appear in the operating activities section under both the direct method and the reconciliation (indirect) method because they are considered operating cash inflows.

Which of the Following Would Appear in Both the Operating