In Computing Net Cash Flow from Operating Activities Using the Direct

question 121

True/False

In computing net cash flow from operating activities using the direct method, each item in the income statement is adjusted from the accrual basis to the cash basis.

---

Definitions:

Press Runs

The total number of units produced in one setup or operation of a press machine.

Wages And Salaries

Compensation paid to employees for their labor, including hourly payments (wages) and fixed annual or monthly payments (salaries).

Spending Variance

The difference between the actual amount of money spent and the budgeted or expected amount, indicating over- or under-spending.

Client-Visits

Refers to the number of times clients or customers visit a business or receive services from a business within a specific time period.