For the Past Two Years, Monroe Corporation's Statement of Cash

question 32

Multiple Choice

For the past two years, Monroe Corporation's statement of cash flows has shown net cash provided by investing activities.Which of the following choices could explain this result?

• A)Collection of accounts receivable balances
• B)Sales of factory equipment
• C)Receipt of cash dividends from investments in other company's stock
• D)Issuance of long-term debt

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Definitions:

Production Departments

Divisions within a manufacturing company responsible for different stages of the production process, from raw materials to finished products.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and factory management salaries, not directly tied to production.

Customizing Department

A specialized department within a company focused on modifying and tailoring products to meet specific customer requirements.

Job-Order Costing System

An accounting system that assigns costs to specific jobs or batches and is used to determine the cost of manufacturing each order.