When Preparing the Statement of Cash Flows Using the Indirect

question 22

Multiple Choice

When preparing the statement of cash flows using the indirect method,the payment of dividends would appear as:

• A) a decrease in the operating activities section
• B) an increase in the operating activities section
• C) a use of cash in the financing activities section
• D) a source of cash in the financing activities section

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Definitions:

Work In Process Inventory

Goods that are in various stages of production within a factory but are not yet completed.

Transferred Out

In cost accounting, it refers to the costs associated with products or goods that have been moved from one production process to another.

Weighted-Average Process

A costing method used in manufacturing, blending the costs of all units produced in a period, regardless of when they were started or finished.

Work In Process

Units of product that are only partially complete and will require further work before they are ready for sale to the customer.