The Statement of Cash Flows Would Disclose the Distribution of Dividends

question 86

Multiple Choice

The statement of cash flows would disclose the distribution of dividends to stockholders

• A)in the financing activities section.
• B)in the investing activities section.
• C)in the operating activities section.
• D)nowhere on the statement.

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Definitions:

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.

GAAP

Generally Accepted Accounting Principles, the standardized set of accounting rules, practices, and procedures used in preparing financial statements in the U.S.

Product Costing

Product costing involves determining all expenses related to the creation of a product, including materials, labor, and overhead, to establish its total cost.

Absorption Costing

In this accounting method, total costs of manufacturing, from direct materials and labor to both fixed and variable overheads, are completely absorbed into the product’s final cost.