Ginny Is an Agent of Vroom! Motors,and Is Designated to Sell

question 63

Essay

Ginny is an agent of Vroom! Motors,and is designated to sell and deliver antique cars.She spends her own money to call clients,visit them and finalize the deals.There is no express agreement between Ginny and Vroom! Discuss the situation.

Understand the presentation and reporting order of cash activities on the statement of cash flows.

Distinguish transactions that do not involve cash and how they are reported on the statement of cash flows.

Understand the indirect method for calculating net cash flow from operating activities, including adjustments to net income.

Identify the classification of cash flow activities (operating, investing, and financing) and specific transactions within each category.

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Definitions:

Special Sensor

A device designed to detect, measure, and respond to specific inputs from the physical environment, such as light, heat, motion, moisture, pressure, or any one of a great number of other environmental phenomena.

Transfer Price

The cost incurred for products or services exchanged between the divisions or departments within the same organization.

Minimal Acceptable

The lowest level or standard considered satisfactory or acceptable for a specific purpose or requirement.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor.