From the Following List, Identify Whether the Change in the Account

question 80

Multiple Choice

From the following list, identify whether the change in the account balance during the year would be reported as an operating (O) , an investing (I) , or a financing (F) activity or not separately reported on the statement of cash flows (N) .Assume that the indirect method is used to determine the cash flows from operating activities.
-Other accrued liabilities

• A)O - Operating
• B)I - Investing
• C)F - Financing
• D)N - Not separately reported on the Statement of Cash Flows

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Definitions:

Excess Capacity

The amount by which the actual production capabilities of a company exceed the current demand for its products or services.

Special Order

A one-time order that is not part of the company's usual ongoing operations, often requiring special pricing or terms.

Incremental Revenues

Additional income generated from a new action or decision, above and beyond the existing baseline revenue.

Incremental Analysis

The method of evaluating the financial impact of business decisions by considering only the costs and benefits that change due to the decision.