Which of the Following Is Not a Source of Cash

question 92

Multiple Choice

Which of the following is not a source of cash?

• A) Net income
• B) Repayment of a bank loan
• C) Reduction in accounts receivable
• D) Depreciation

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Definitions:

Factory Overhead

The total of all indirect costs associated with manufacturing, including utilities, rent for the manufacturing facilities, and maintenance.

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or the provision of services.

Finished Goods Inventory

The stock of completed products ready for sale at the end of an accounting period.

Raw Materials

Raw materials are the basic materials from which products are manufactured or made, often used in the initial stages of the production process.