When Analyzing the Changes on a Spreadsheet Used to Prepare

question 125

Multiple Choice

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from operating activities generally affect:

• A) Noncurrent liability and equity accounts.
• B) Noncurrent assets.
• C) Net income, current assets, and current liabilities.
• D) Equity accounts only.
• E) Both noncurrent assets and noncurrent liabilities.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing detailed insights into the actual costs of processes, products, or services.

Batch Setup

Batch setup refers to the process and time required to prepare equipment and systems for manufacturing a specific batch of products, including assembly and configuration activities.

Expected Activity

The projected level of operation or production, often used in budgeting and planning processes.

Clerical Activity

Routine office tasks and procedures such as filing, typing, and scheduling, which support the administrative functions of an organization.