All of the following might appear on the direct-method cash flow statement except:
A) interest received on a loan
B) payment of dividends
C) loss on sale of land
D) collections from customers

Question

Quizplus · Accepted Answer

The direct-method cash flow statement only reports cash inflows and outflows related to operating activities, investing activities, and financing activities. A loss on sale of land is a non-operating item and would not be included in the direct-method cash flow statement. Interest received on a loan would be included as an operating cash inflow, payment of dividends would be included as a financing cash outflow, and collections from customers would be included as an operating cash inflow.

All of the Following Might Appear on the Direct-Method Cash