Use the Following Major Cash Flow Activities to Classify the Activities

question 144

Multiple Choice

Use the following major cash flow activities to classify the activities listed below:
-Issued long-term debt

• A)Operating Activity, Source of Cash
• B)Operating Activity, Use of Cash
• C)Investing Activity, Source of Cash
• D)Investing Activity, Use of Cash
• E)Financing Activity, Source of Cash
• F)Financing Activity, Use of Cash
• G)Non-cash Investing & Financing Activity

---

Definitions:

Manufacturing Margin

The difference between the production cost and the selling price of goods, highlighting the profitability of manufacturing activities.

Absorption Costing Income Statement

This income statement format incorporates all manufacturing costs, including both fixed and variable, into the cost of a product.

Net Profit

The amount of earnings remaining after all expenses, taxes, and costs have been subtracted from total revenue; also known as net income.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.