Which of the following is NOT included in a statement of cash flows prepared under the DIRECT method?
A) cash flows from operating activities
B) gross profit
C) cash paid to suppliers and employees
D) interest paid or received

Question

Quizplus · Accepted Answer

Gross profit is not included in a statement of cash flows prepared under the direct method as it is a measure of profitability, not cash flows. The direct method focuses on cash inflows and outflows from operating activities. Cash paid to suppliers and employees and interest paid or received are included in a statement of cash flows prepared under the direct method as they reflect cash flows from operating activities.

Which of the Following Is NOT Included in a Statement