On the Statement of Cash Flows, the Cash Flows from Operating

question 120

Multiple Choice

On the statement of cash flows, the cash flows from operating activities section would be affected by

• A)receipts from the issuance of capital stock.
• B)receipts from the sale of investments.
• C)payments for the acquisition of investments.
• D)cash receipts from sales activities.

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Definitions:

Overhead

The ongoing operational costs not directly attributable to the creation of a product or service.

General Journal

A comprehensive journal used in bookkeeping to record all types of accounting transactions before their transfer to specific accounts in the ledger.

Predetermined Rate

A rate established before the start of a period for the purpose of applying overhead costs to products or services, based on estimated costs.

Direct Labor Hours

The total time workers spend producing goods or providing services that are directly associated with the production costs.