The Statement of Cash Flows Would Disclose the Purchase of a Building

question 38

Multiple Choice

The statement of cash flows would disclose the purchase of a building for cash

• A)nowhere on the statement.
• B)in the operating activities section.
• C)in the investing activities section.
• D)in the financing activities section.

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into creating them, aiming for more accurate cost information.

Activity-Based Costing

is a method of accounting that assigns costs to products based on the activities they require, aiming to provide more accurate product costing.

Activity Rate

The activity rate refers to a predetermined overhead rate used in activity-based costing to allocate costs to products or services based on specific activities.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to assign overhead costs to products or job orders based on a relevant activity base such as machine hours or labor hours.