USGAAP Requires the Disclosure of the Acquisition of a Building

question 115

Multiple Choice

U.S.GAAP requires the disclosure of the acquisition of a building by assuming a mortgage obligation

• A)as both a financing activity and an operating activity.
• B)as both an operating activity and an investing activity.
• C)as both an investing activity and a financing activity.
• D)in a separate schedule or note, but does not appear in the statement of cash flows as an operating activity, investing activity or a financing activity.
• E)as both an investing activity and a exchange activity.

---

Definitions:

Labor Standards

The established benchmarks or expectations for the amount of time and effort required to perform a job or task efficiently.

Operations

The day-to-day activities involved in running a business, especially those related to production, manufacturing, or providing services.

Standard Cost System

An accounting system that uses predetermined costs for products or services to help managers control expenses and analyze operational performance.

Direct Labor

The labor costs that can be directly attributed to the production of goods or services, such as wages for workers who assemble a product.