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

Question

Quizplus · Accepted Answer

The direct method of presenting the statement of cash flows starts with operating cash inflows and outflows. Therefore, collections from customers would be included as an operating cash inflow. Amortization expense and loss on sale of equipment would be included in the indirect method of presenting the statement of cash flows. Net income can be included in either the direct or indirect method, but it would not provide much detail on the cash received or paid during the period.

Which of the Following Would Appear on a Statement of Cash