Use the Following Information and the Indirect Method to Calculate

question 120

Multiple Choice

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

• A)$69,900.
• B)$108,900.
• C)$93,900.
• D)$85,700.
• E)$81,600.

Gain knowledge of the use of worksheets in the accounting process for preparing financial statements and adjusting entries.

Understand how to calculate and interpret the effects of accounting adjustments on the adjusted trial balance and financial statements.

Understand the types of funds used in governmental accounting and their purposes.

Identify and differentiate between the basis of accounting (modified accrual vs. accrual) used in various governmental funds.

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Definitions:

Budget Variance

The difference between the budgeted or planned amount of expense or revenue, and the actual amount incurred or received.

Fixed Overhead Budget Variance

The variance between the budgeted and the actual incurred fixed overhead expenses.

Manufacturing Overhead Applied

The portion of estimated manufacturing overhead cost that is assigned to each unit of production based on a predetermined rate.

Labor-Hour

A labor-hour represents an hour of work performed by an employee, typically used as a basis for allocating labor costs or measuring productivity.