Which of the following items is reported in the operating section of the statement of cash flows using the direct method?
A)Depreciation expense.
B)Gain on sale of an asset.
C)Cash received from customers.
D)Loss on sale of an asset.

Question

Quizplus · Accepted Answer

Cash received from customers is a key item in the operating section of the statement of cash flows as it represents the cash generated from the company's core business operations. Depreciation expense and loss/gain on sale of assets are reported in the investing section, while gains/losses on debt or equity securities are reported in the financing section.

Which of the Following Items Is Reported in the Operating