The Order of Presentation of Activities on the Statement of Cash

question 146

Multiple Choice

The order of presentation of activities on the statement of cash flows is

• A) operating, investing, and financing
• B) operating, financing, and investing
• C) financing, operating, and investing
• D) financing, investing, and operating

---

Definitions:

Contribution Margin

The difference between sales revenue and variable costs of a product, indicating how much contributes to covering fixed costs and generating profit.

Break Even

The point at which total costs equal total revenue, meaning that a business or project is neither making a profit nor incurring a loss.

Variable Cost

A cost that varies with the level of output or production, such as materials and labor costs.

Variable Cost

Costs that change directly and proportionally with the level of production output or sales volume.