The Following Information Is Reported in the Operating Activities Section

question 208

Multiple Choice

The following information is reported in the operating activities section of Gateway's statement of cash flows for 2014: Which one of the following conclusions can be assumed from the information provided?

• A)Gateway used the direct method to determine cash flows from operating activities.
• B)Gateway purchased more merchandise than it sold in 2014.
• C)Cash payments for merchandise purchases were less than the amount of merchandise purchased on credit during 2014.
• D)Cash payments for merchandise exceeded cost of goods sold by $200,000.

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Definitions:

Control

In management, it refers to the process of monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

Sigma C-chart

A type of control chart used in statistical process control to monitor the number of defects per unit of a product or service, helping manufacturers identify variability in their processes.

Paint Process

A manufacturing or finishing procedure where a protective or decorative coating is applied to the surface of a material, often involving preparation, application, and drying stages.

Defects

Imperfections or errors in a product or process that result in a lack of quality or performance.