When using the direct method to report cash flow from operating activities,a specific category for cash paid to employees and other suppliers of goods and services must be reported.

Question

srajan jaiswal · Accepted Answer

Final Answer : True, Explanation :  The direct method requires the disclosure of all major classes of gross cash receipts and gross cash payments, including cash paid to employees and other suppliers of goods and services.

When using the direct method to report cash flow from operating activities,a specific category for cash paid to employees and other suppliers of goods and services must be reported.

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Learning Objectives

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