On the Statement of Cash Flows,the Sum of the Three

question 116

Multiple Choice

On the statement of cash flows,the sum of the three major components (operating activities,investing activities,financing activities) adds up to

• A)net income for the period.
• B)the change in the cash account balance between the beginning and ending of the period.
• C)the ending cash balance.
• D)the amount of cash inflow for the period.

---

Definitions:

Predetermined Overhead Rate

A calculation used in cost accounting to allocate overhead costs to products or job orders based on a set formula before the period begins.

Direct Labour-hours

The total number of labor hours spent directly on the production of goods or services.

Job-order Costing

A costing method used to track costs to individual jobs or batches, assigning direct costs and allocating indirect costs to each job.

Labour Time

The total hours worked by employees measurable for a specific period, often used for costing and productivity analysis.