On a Statement of Cash Flows, Which Is Considered an Operating

question 111

Multiple Choice

On a statement of cash flows, which is considered an operating activity?

• A) Sale of securities
• B) Purchase of fixed assets
• C) Purchase of securities
• D) Depreciation

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Definitions:

Departmental Predetermined Rates

Specific predetermined overhead rates calculated for different departments within a company, to more accurately allocate costs.

Machine-Hours

A measure of production volume in terms of the total hours machines are operated in the manufacturing process.

Departmental Predetermined Rates

Rates used to allocate departmental overhead costs, established in advance based on expected costs and activity levels.

Machine-Hours

A measurement unit representing the operational time of a machine, typically used in manufacturing to allocate costs based on usage.