Which of the following items is reported in the operating section of the statement of cash flows using the direct method?
A)Depreciation expense.
B)Gain on sale of an asset.
C)Cash received from customers.

Question

Quizplus · Accepted Answer

Cash received from customers is reported in the operating section of the statement of cash flows using the direct method. Depreciation expense is also reported in the operating section, but using the indirect method. Gain on sale of an asset is reported in the investing section.

Which of the Following Items Is Reported in the Operating