Which of the following would appear on a statement of cash flows prepared using the direct method?

Question

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The direct method of preparing a statement of cash flows shows actual cash inflows and outflows from operating activities. Therefore, cash payments for salaries would appear on the statement. Choices A, C, and D all relate to non-cash items (loss on sale of equipment, amortization expenses, and depreciation expenses, respectively) and would only appear on the statement if the indirect method was utilized.

Which of the Following Would Appear on a Statement of Cash