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.

Question

Quizplus · Accepted Answer

Cash collections from customers are a source of cash from operating activities when using the direct method to prepare the cash flow statement.

Which of the Following Transactions or Events Should Be Reported