Using Overtime as a Solution to a Labor Shortage Is

question 47

Multiple Choice

Using overtime as a solution to a labor shortage is best used when the shortage:

• A) impacts only one department.
• B) is less than 40 people.
• C) will last more than 12 months.
• D) is expected to last a short period of time.
• E) is related to part time positions only.

---

Definitions:

Operating Activities

Activities that relate directly to the primary operations of the company, such as manufacturing, distributing, marketing, and selling a product or service.

Cash Receipts

All money (cash, checks, electronic transfers) received by a business, recorded in its accounting system, often associated with sales or other income.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Direct Method

A cash flow statement preparation approach that presents the specific cash flows associated with sources and uses of cash.