On the Statement of Cash Flows, Which of the Following

question 134

Multiple Choice

On the statement of cash flows, which of the following sections includes borrowing money and paying off loans?

• A)Investing section
• B)Financing section
• C)Operating section
• D)None of the above

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Definitions:

Inputs

Resources, such as labor, materials, and capital, that are used in the production process to create goods and services.

Minimum Cost

The lowest possible cost at which a particular set of goods or services can be produced or acquired without sacrificing quality or quantity.

Factor Prices

The prices of the inputs used in the production process, such as labor wages, capital rental rates, and raw material costs.

Production Function

An equation that describes the output of a production process, given the quantity of inputs used.