The Main Source of Cash for a Business Comes From

question 7

Multiple Choice

The main source of cash for a business comes from:

• A)operating activities on the statement of cash flows.
• B)financing activities on the statement of cash flows.
• C)investing activities on the statement of cash flows.
• D)current assets on the balance sheet.

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Definitions:

Salespersons

Individuals who sell products or services for a company, often working on commission and responsible for generating revenue for the business.

Direct Materials Used

The raw materials directly utilized in manufacturing a product, which are a component of the cost of goods sold.

Direct Labor

The labor costs directly tied to the production of goods or services, including wages for workers who physically manufacture products.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, rent, and salaries for non-direct labor.