Which of the following statements is true about the indirect method of preparing the operating activities section on a statement of cash flows?
A) It adjusts cash basis net income to accrual basis net income.
B) It adjusts accrual basis net income to cash provided by operating activities.
C) It adjusts accrual basis net income to budgeted net income.
D) It adjusts cash basis net income to budgeted net income.
B
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When data are standardized, the intercept assumes a value of ________
A) one B) negative one C) infinity D) zero E) positive one
Kroeker Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: MillingCustomizingMachine-hours 17,000 12,000Direct labor-hours 1,000 9,000Total fixed manufacturing overhead cost$112,200$81,000Variable manufacturing overhead per machine-hour$1.70 Variable manufacturing overhead per direct labor-hour $4.30 During the current month the company started and finished Job T898. The following data were
recorded for this job: Job T898:MillingCustomizingMachine-hours 80 30Direct labor-hours 20 50The estimated total manufacturing overhead for the Milling Department is closest to: A. $240,833 B. $141,100 C. $112,200 D. $28,900
Marlow Corporation uses the FIFO method in its process costing system. Department A's beginning work in process inventory consisted of 12,000 units, 100% complete with respect to materials and 60% complete with respect to conversion costs. The total cost of this inventory was $76,400. A total of 25,000 units were transferred out during the month. The costs per equivalent unit were computed to be $3.40 for materials and $4.70 for conversion costs. The cost of the units completed and transferred out was closest to:
A. $202,500 B. $204,260 C. $146,100 D. $195,540
Factory outlet stores are generally the same as warehouse clubs, except that a factory outlet store carries only the merchandise of the manufacturer that owns it.
Answer the following statement true (T) or false (F)