On a Statement of Cash Flows Using the Indirect Method

question 78

Multiple Choice

On a statement of cash flows using the indirect method, depreciation expense will

• A)be added to profit in the operating activities section.
• B)be deducted from profit in the operating activities section.
• C)appear a cash receipt in the investing activities section.
• D)be ignored.

Understand the basics of standard costing system including its components and calculations.

Calculate and analyze direct material price variances.

Analyze and calculate variable manufacturing overhead variances, including rate and efficiency variances.

Calculate and interpret direct labor variances, including rate and efficiency variances.

---

Definitions:

Initial Offering

The first sale or issuance of stock by a company to the public, typically referred to as an Initial Public Offering (IPO), marking a company's transition from private to public.

Sarbanes-Oxley Act

A law passed by the U.S. Congress in 2002 aimed at protecting investors from fraudulent financial reporting by corporations.

Securities Act of 1933

United States federal law enacted as a result of the stock market crash of 1929, which requires securities sold to the public to be registered and regulated.

Form 8-K

A report filed by publicly traded companies with the SEC to announce significant events that shareholders should know about.