A client is using the direct method to report cash flows from operating activities on its statement of cash flows. In order to keep its financial statements as short as possible, it would prefer to use the minimum number of line items in that section of its statement. Identify the location in professional standards that indicates the minimum classes of operating cash receipts and payments that should be reported on a statement of cash flows when applying the direct method.

Instructions:

In the box below, just type in your answer of FASB Codification in the following format.