The Statement of Cash Flows Reports Cash Flows from the Activities

question 130

Multiple Choice

The statement of cash flows reports cash flows from the activities of:

• A)Operating,purchasing,and investing.
• B)Borrowing,paying,and investing.
• C)Financing,investing,and operating.

---

Definitions:

Raw Materials

The basic materials and components used at the start of the production process, essential for creating the finished product.

Inventories

Quantifiable goods or materials that a business holds for the purpose of sale in the ordinary course of business, production, or use.

Job-Order Costing

A cost accounting system that collects costs individually for each job, suitable for customized orders or distinctly identifiable products.

Overapplied Overhead

A situation where the overhead allocated to products or services is more than the actual overhead incurred.