Under the direct method,which one of the following would represent cash paid?
A) Losses on sales of plant assets
B) Gains on sales of plant assets
C) Interest expense,adjusted for changes in interest payable and amortization of bond premium or discount
D) Depreciation expense,adjusted for changes in depreciation methods

Question

Quizplus · Accepted Answer

Interest expense, adjusted for changes in interest payable and amortization of bond premium or discount, represents cash paid for interest under the direct method of preparing the cash flow statement. This adjustment is necessary to reflect the actual cash flow related to interest, separate from the accrual accounting figures.

Under the Direct Method,which One of the Following Would Represent