Which One of the Following Is a Use of Cash

question 32

Multiple Choice

Which one of the following is a use of cash?

• A) increase in notes payable
• B) increase in inventory
• C) increase in long-term debt
• D) decrease in accounts receivable
• E) increase in common stock

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Definitions:

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or expected costs.

Unfavorable

A term used in variance analysis to describe a situation where actual results are worse than expected results, leading to a negative impact on financial performance.

Favorable

A term used in finance and accounting to describe results that are better than expected or budgeted.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated based on estimated overhead costs and an allocation base.