The Net Cash Provided by Operating Activities Is Affected By

question 96

Multiple Choice

The net cash provided by operating activities is affected by:

• A)the issue of bonds payable for cash.
• B)a purchase of land for cash.
• C)a change in merchandise inventory.
• D)proceeds of cash investments by stockholders.

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Definitions:

Weighted-Average Method

A costing method for inventory that determines the cost of goods sold and the remaining inventory value by averaging the costs of all available units for sale throughout the period.

Equivalent Units

A concept in cost accounting that is used to allocate costs to the production process when there is more than one stage of production, converting work-in-process into complete units of output.

Direct Labor Costs

These are wages and benefits paid for the labor directly involved in the manufacturing of products.

Processing Departments

Units or sections in a manufacturing environment where specific processes are completed, contributing to the production of goods.