Under the Indirect Method of Preparing the Statement of Cash

question 46

Multiple Choice

Under the indirect method of preparing the statement of cash flows, the starting point to determine net cash from operating activities is:

• A) the beginning cash balance.
• B) the ending cash balance.
• C) net income.
• D) sales.

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Definitions:

Pull System

A concept that results in material being produced only when requested and moved to where it is needed just as it is needed.

Upstream Stations

Facilities or locations in a supply chain where processes occur before reaching the final production stage.

Manufacturing Cycle Time

The total time required to convert raw materials into finished goods, including processing, assembly, and queue times.

Employee Empowerment

A management philosophy that encourages giving employees the autonomy, authority, and responsibility to make decisions and contribute to the company's success.