Cash payments to suppliers would appear on a statement of cash flows using the direct method as a(n)
A)financing activity.
B)operating activity.
C)investing activity.
D)debt activity.
E)equity activity.

Question

Quizplus · Accepted Answer

Cash payments to suppliers relate to the operating activities of a company as they are directly linked to the purchase of goods or services required for generating revenues. Thus, they appear under the operating activities section in the statement of cash flows when prepared using the direct method.

Cash Payments to Suppliers Would Appear on a Statement of Cash