Which One of the Following Is an Investing Activity on the Statement

question 174

Multiple Choice

Which one of the following is an investing activity on the statement of cash flows?

• A)Collection of accounts receivable
• B)Purchase of long-term investments
• C)Receipt of interest
• D)Receipt of dividends

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Definitions:

Plantwide Predetermined Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by the total estimated amount of allocation base, applied throughout the plant.

Machine-Hours

A measure of production time, representing the total hours that machines are operated in the manufacturing process.

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of goods, such as the cost of maintenance, heat, and light of the production facility.

Plantwide Predetermined Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by the total estimated amount of the allocation base, applied throughout an entire plant or facility.