In Reporting Variances

question 65

Multiple Choice

In reporting variances

• A) promptness is relatively unimportant.
• B) management normally investigates all variances.
• C) the reports should facilitate management by exception.
• D) the reports are not departmentalized.

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Definitions:

Operating Activities

Activities directly related to the primary business operations, including revenue generation and expenses directly tied to the core business functions.

Indirect Method

A way of calculating cash flows from operating activities by adjusting net income for changes in non-cash accounts.

Cash Dividends

A distribution of a company's earnings to its shareholders in the form of cash.

Statement of Cash Flows

A financial report that provides a summary of the cash inflows and outflows for a business over a specific period, categorizing them as operating, investing, or financing activities.