Which of the Following Items Should a Company Report Directly

question 54

Multiple Choice

Which of the following items should a company report directly in its monthly cash budget?

• A) cash proceeds from selling one of its divisions.
• B) accrued interest on zero coupon bonds that it issued.
• C) new shares issued in a stock split.
• D) new shares issued in a stock dividend.
• E) its monthly depreciation expense.

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Definitions:

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.

Factory Rent

The cost incurred for the space leased or rented to operate a manufacturing or production facility.

Direct Costs

Costs that can be directly attributed to the production of specific goods or services, such as labor or materials.

Cost Object

Any item for which costs are measured and assigned, including products, services, projects, or customers.