In the Month of May Kayak Company Inc

question 47

Multiple Choice

In the month of May Kayak Company Inc. wrote checks in the amount of $81000. In June checks in the amount of $112000 were written. In May $77000 of these checks were presented to the bank for payment and $96000 in June. What is the amount of outstanding checks at the end of May?

• A) $4000
• B) $16000
• C) $19000
• D) $31000

Determine how specific transactions are reported in the cash flows statement using the direct method.

Determine how specific transactions are reported in the cash flows statement using the indirect method.

Understand the significance of operating, investing, and financing activities in the statement of cash flows.

Analyze the impact of specific business operations and transactions on cash flows.

---

Definitions:

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities required to produce them.

Direct Labor-Hours

The total hours of labor directly involved in manufacturing products or providing services.

Direct Materials Cost

The cost of raw materials and components that are directly traceable to the finished product.