Use the Following Codes to Indicate How the Cash Flow

question 31

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method.
-Declared cash dividends.

• A)Inflow from operating activity
• B)Outflow from operating activity
• C)Inflow from investing activity
• D)Outflow from investing activity
• E)Inflow from financing activity
• F)Outflow from financing activity
• G)Noncash investing and financing activity
• H)Not reported on statement of cash flows

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Definitions:

Budgeted Sales

Refers to the expected amount of sales revenue a company plans to achieve during a specified period, often used for planning and performance evaluation purposes.

Beginning Inventory

The value of all goods held by a company for sale at the start of an accounting period, before any new inventory has been added or any sales have been made.

Ending Inventory

The cumulative worth of merchandise ready for sale when an accounting period concludes.

Direct Materials

Raw materials that can be directly attributed to the production of goods, forming an essential component of finished products.