The Cash Flow Activities on the Statement of Cash Flows

question 32

Multiple Choice

The cash flow activities on the statement of cash flows are divided into which of the following categories?

• A) Operating activities, investing activities, and financing activities
• B) Investing activities, purchasing activities, and financing activities
• C) Operating activities, investing activities, and equity activities
• D) Operating activities, purchasing activities, and financing activities

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Definitions:

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as return divided by the cost of the investment.

Support Department Allocation Rate

A rate used to allocate the costs of support departments to producing departments or directly to products based on relevant factors or usage measures.

Cost Drivers

Factors that cause the cost of an activity or product to change, such as production volume or raw material prices.

Support Department Cost

Expenses related to the functions that assist the direct operations or production departments of a business, such as human resources or maintenance.