Which of the Following Would Be Included in Cash Flows

question 210

Multiple Choice

Which of the following would be included in cash flows from operating activities?

• A)Cash received from customers.
• B)Cash received from an issuance of bonds.
• C)Cash dividends paid to stockholders.
• D)Cash used for purchases of equipment.

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Definitions:

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as utilities and materials used in the production process.

Direct Labor-Hours

The total number of hours worked by employees who are directly involved in the manufacturing process.

Fixed Manufacturing Overhead

Costs in manufacturing that do not change with the level of production output, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Job-Order Costing System

A costing system that assigns costs to specific production jobs, useful for customized orders.