The Final Step in Generating a Statement of Cash Flows

question 45

Multiple Choice

The final step in generating a statement of cash flows is to

• A)sum up cash flow from investing activities and transfer it to the balance sheet.
• B)sum up cash flow from operations and transfer it to the balance sheet.
• C)sum up cash flow from operations,financing and investment activities and transfer it to the balance sheet.
• D)none of the above.

---

Definitions:

Process Cost Systems

Accounting methods used in industries where similar products are produced in a continuous process, allocating costs proportionally across all units produced.

Work In Process Account

An account that tracks the costs associated with the production process, including labor, materials, and overhead, for products that are not yet completed.

Machine Hours

A measure of the amount of time a machine is operated during a given period, used as a basis for allocating manufacturing overhead.

Overhead Rate

The ratio used to allocate indirect costs to products or services, based on a specific base such as labor hours or machine hours.