Identify the Section of the Statement of Cash Flows (A-D)

question 90

Multiple Choice

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported.
-Sale of machinery held for use by the company

• A)Operating activities
• B)Financing activities
• C)Investing activities
• D)Schedule of noncash financing and investing

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Definitions:

ABC Analysis

A method for classifying inventory or items into three categories (A, B, and C) based on their importance, usually determined by value or usage rate.

Inventory Savings

Reductions in costs achieved through efficient management of stock, including ordering, storing, and using goods or materials.

Economic Order Quantity

A calculation that determines the optimal order quantity that minimizes total inventory costs, including holding, ordering, and shortage costs.

Safety Stock

An extra quantity of inventory kept on hand to prevent stockouts caused by unpredictable demand or supply delays.