Which of the following is not included in the cash flow statement under the direct method of cash flow?

Question

Quizplus · Accepted Answer

The changes in depreciation are not included in the cash flow statement under the direct method of cash flow. The direct method focuses on the actual cash inflows and outflows during the period, including cash receipts from customers, cash paid to suppliers, and operating expenses paid in cash. Changes in accounts receivable and accounts payable are included in the direct method, as they directly affect cash inflows and outflows. Interest expense would also be included, as it is a cash outflow.

Which of the Following Is Not Included in the Cash