Which of the Following Would Be Classified as an Investing

question 25

Multiple Choice

Which of the following would be classified as an investing activity on the statement of cash flows?

• A)Cash received from sale of land.
• B)Cash paid for interest.
• C)Cash received from stock issuance.
• D)Dividends paid.

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Definitions:

Direct Materials

Raw materials and components that are directly used in the production of a product, which can be easily traced and assigned to specific goods.

Direct Labor Costs

Expenses associated with employees who are directly involved in the production of goods or services.

Factory Overhead Account

An account that accumulates all indirect costs associated with manufacturing operations, not directly tied to specific units.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and management salaries, not directly tied to the production of goods.