Which of the following items is reported in the statement of cash flows using the direct method?

Question

Quizplus · Accepted Answer

The direct method involves showing actual cash inflows and outflows from operating activities. Cash received from customers is a cash inflow from operating activities and would be reported in the statement of cash flows using the direct method. Depreciation expense and gain or loss on sale of an asset are non-cash transactions and would be reported in the statement of cash flows using the indirect method.

Which of the Following Items Is Reported in the Statement