Does the direct reporting format provide complete flexibility in terms of the line items to report in operating activities? O A. The FASB provides no flexibility for reporting the operating activities section on the statement of cash flows when using the direct method. The following are the only line items permitted: cash collected from customers, lessees, licensees, etc., interest and dividends received; other operating cash receipts; cash paid to employees and suppliers of goods and services; depreciation expense; gain (loss) on the sale of plant assets; interest paid; income taxes paid and other operating cash disbursements. B. Although there is some flexibility in the number and description of line items reported in the operating activities section of the statement of cash flows, there are certain line items specified by the FASB. At a minimum, the following line items should be included in the cash flow from operating activities calculation under the direct method: cash collected from customers, lessees, licensees, etc.; interest and dividends received; other operating cash receipts; cash paid to employees and suppliers of goods and services; depreciation expense; gain (loss) on the sale of plant assets; interest paid; income taxes paid and other operating cash disbursements. C. Although there is some flexibility in the number and description of line items reported in the operating activities section of the statement of cash flows, there are certain line items specified by the FASB. At a minimum, the following line items should be included in the cash flow from operating activities calculation under the direct method: cash collected from customers, lessees, licensees, etc.; interest and dividends received; other operating cash receipts; cash paid to employees and suppliers of goods and services; interest paid; income taxes paid and other operating cash disbursements. D. The FASB provides no flexibility for reporting the operating activities section on the statement of cash flows when using the direct method. The following are the only line items permitted: cash collected from customers, lessees, licensees, etc.; interest and dividends received; other operating cash receipts; cash paid to employees and suppliers of goods and services; interest paid; income taxes paid and other operating cash disbursements