When Analyzing the Changes on a Spreadsheet Used to Prepare

question 156

Multiple Choice

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from investing activities generally affect:

• A)Net income,current assets,and current liabilities.
• B)Noncurrent assets.
• C)Noncurrent liability and equity accounts.
• D)Both noncurrent assets and noncurrent liabilities.
• E)Equity accounts only.

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Definitions:

Indirect Labor Costs

Expenses related to employees who do not directly work on a product but are necessary for the production process, such as maintenance personnel.

Job-order Costing

An accounting method where costs are assigned to each individual job, commonly used in custom or batch production environments.

Work in Process

Items in various stages of completion in the production process, not yet finalized as finished goods.

Finished Goods

Items that have finished being made and are available for purchase.