Cash Inflows and Outflows Associated with Changes in Non-Current Liabilities

question 52

Multiple Choice

Cash inflows and outflows associated with changes in non-current liabilities and equity, not arising from profit, are included in which section of the statement of cash flows?

• A)Non-current.
• B)Operating.
• C)Financing.
• D)Investing.

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Definitions:

Unfavorable Variance

A situation where actual costs exceed the standard or budgeted costs, often indicating inefficiencies or increased expenses.

Favorable Variance

A financial term indicating that actual costs were lower or revenues were higher than planned.

Budgeted Amount

The projected costs or revenues allocated to a specific activity or period, based on estimates.

Budget Ratcheting

The practice of setting future budget allocations based on the current period’s expenditures, discouraging under-spending in fear of budget cuts.