The Statement of Cash Flows Will Not Provide Insight into

question 134

Multiple Choice

The statement of cash flows will not provide insight into

• A) why dividends were not increased.
• B) whether cash flow is greater than net income.
• C) the exact proceeds of a future bond issue.
• D) how the retirement of debt was accomplished.

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Definitions:

Direct Expenses

Expenses that can be directly attributed to a specific cost object, such as a product, department, or project.

Service Accounting System

An accounting system designed to deal with financial transactions and record-keeping in service-oriented businesses.

Departmental Accounting System

An accounting method used to separately track the performance and financial records of different departments within a company.

Service Center

A department or facility providing support services to other units within an organization, often not directly generating profit.