On the Statement of Cash Flows, Which One of the Following

question 68

Multiple Choice

On the statement of cash flows, which one of the following is considered a financing activity?

• A) Increase in inventory
• B) Decrease in accounts payable
• C) Increase in net working capital
• D) Dividends paid
• E) Decrease in fixed assets

---

Definitions:

Controllable Variance

A measure in accounting that represents the difference between actual costs and the budgeted amounts that management could control or influence.

Indirect Factory Wages

Wages paid to employees who are not directly involved in production but whose services are necessary for the manufacturing process.

Budgeted Amounts

Financial projections or estimates of revenue and expenses over a specified period, used for planning and control purposes.

Direct Labor Time Variance

The difference between the actual time taken to produce a good or service and the estimated time.