How Is the Change in Cash Classified on the Statement

question 77

Multiple Choice

How is the change in cash classified on the statement of cash flows?

• A)It is found in the investing activities section of the statement.
• B)It is found in the operating activities section of the statement.
• C)It is found in the financing activities section of the statement.
• D)It is the sum of the investing,operating,and financing activities sections.

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Definitions:

Planning Budget

A budget developed at the beginning of the budgeting period that is based on projected levels of activity.

Selling

Expenses incurred directly and indirectly in making sales, including advertising, sales commissions, and the cost of sales personnel.

Administrative Expenses

Overhead or indirect costs related to the general operation of a company, such as office supplies, legal fees, and management salaries.

Planning Budget

A financial plan that estimates the revenues and expenditures for a certain period of time in advance.