The Final Step in Generating a Statement of Cash Flows

question 6

Multiple Choice

The final step in generating a statement of cash flows is to

• A) sum up cash flow from operations, financing, and investment activities and transfer it to the balance sheet.
• B) sum up cash flow from operations and transfer it to the balance sheet.
• C) sum up cash flow from investing activities and transfer it to the balance sheet.
• D) none of the above.

Grasp the concept of variable costing and its impact on business decision-making.

Identify and differentiate between controllable and non-controllable costs.

Analyze and compute contribution margin and manufacturing margin under variable costing.

Determine the effect of sales and production levels on operating income and inventory valuation.

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