Which of the Following Represents a Source of Cash

question 40

Multiple Choice

Which of the following represents a source of cash?

• A) a decrease in accounts payable
• B) a decrease in accounts receivable
• C) payment of dividends
• D) an increase in inventories

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Definitions:

Factory Overhead

encompasses all indirect costs associated with manufacturing operations, including utilities, maintenance, and factory manager salaries.

Administrative Expenses

Expenses related to the general operation of a business, such as salaries of executive officers and costs of general services.

Selling Expenses

Costs incurred directly and indirectly in selling products or services, including advertising, sales commissions, and store operations.

Factory Overhead Rate

A measure used to assign the total indirect manufacturing costs to individual units of production, often based on a standard costing system or activity-based costing.