Which of the Following Variations of the Accounting Equation Describes

question 88

Multiple Choice

Which of the following variations of the accounting equation describes the preparation of the statement of cash flows?

• A)Change in cash = Change in (Liabilities + Stockholders' equity − Noncash assets)
• B)Change in cash = Change in (Liabilities − Stockholders' equity + Noncash assets)
• C)Change in cash = Change in (Liabilities + Stockholders' equity + Noncash assets)
• D)Change in cash = Change in (Liabilities − Stockholders' equity − Noncash assets)

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Definitions:

Support Department

Departments that do not directly participate in the primary activities of a business but provide essential services or support to those that do.

Payroll Checks

Payroll checks are written by an employer to pay employees for services rendered during a specific time period.

Cost Driver

A cost driver is a factor that causes a change in the cost of an activity. It directly influences the cost of a process, product, or operation.

Support Department

A unit within an organization that provides essential services and support to the core departments, facilitating their operations rather than directly contributing to the production of goods or services.