Operating Cash Flows Would Exclude

question 35

Multiple Choice

Operating cash flows would exclude:

• A)Payment of employee salaries.
• B)Receipt of cash from customers.
• C)Payment of dividends.
• D)Payment for advertising.

Demonstrate an understanding of the role of standard costing in inventory valuation and its impact on income statements.

Understand the key concepts and classifications within standard costing, including the distinction between direct materials, direct labor, and fixed overhead.

Learn how to record transactions in a standard costing system accurately.

Gain the ability to compute variances between actual costs and standard costs, including direct materials, direct labor, and fixed overhead variances.

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Definitions:

Accounts Payable

Liabilities of a company representing amounts owed to creditors for goods and services that were purchased on credit.

Store Equipment

Fixed assets or long-term assets purchased for the operation of a store, such as shelves, register systems, and furniture, which are used in the business over several years.

F.O.B. Shipping Point

A shipping term indicating that the buyer takes ownership and responsibility for goods once they are shipped, and is responsible for shipping costs.

Merchandise Inventory

Goods that a company intends to sell to customers that are considered as current assets on the balance sheet.