Which Would NOT Be Included in the Operating Activities Section

question 52

Multiple Choice

Which would NOT be included in the operating activities section of a direct method statement of cash flow?

• A) Changes in accounts payable
• B) Changes in accounts receivable
• C) Changes in inventory
• D) Changes in long-term notes payable

---

Definitions:

AQL

Acceptable Quality Level is a statistical measurement of the maximum number of defective items considered acceptable in a sample size during quality control testing.

LTPD

Lot Tolerance Percent Defective, a quality control measure indicating the highest defect rate in a lot that consumers are willing to tolerate.

Quality Control Chart

A graphic representation of process data over time, used to monitor the quality of processes.