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Depreciation expense, loss on sale of assets and gain on retirement of debt are:
multiple choice
always reported on the statement of cash flows using the direct method.
never reported on the statement of cash flows using the direct method.

Respuesta :

Depreciation expenses, loss on sale of assets, and gain on retirement of debt are never reported on the statement of cash flows using the direct method.

Under the direct method, only specific cash flows activities associated with items that affect cash flows are presented in the statement of cash flows. Those typical items include:

  • Cash collected from customers
  • Interest and dividend received
  • Cash paid to employees and suppliers
  • Interest and income taxes paid

Direct method reveals the operating cash receipts and payments, unlike the indirect method. Any other account such as depreciation and amortization, loss on sale of assets, and gain on retirement of debt will be recorded under the Reconciliation of net income to net cash provided by operating activities, separated from the Statement of Cash flows.

Learn more about Direct Method here: https://brainly.com/question/13121974

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