On the statement of cash flows prepared by the indirect

Reference no: EM13596102

1) Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.
a. true
b. false

2) If the cost of direct materials is a small portion of total production cost, it may be classified as part of:
a. direct labor cost
b. selling and administrative costs
c. miscellaneous costs
d. factory overhead cost

3) On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include
a. receipts from the issuance of capital stock
b. amortization of premium on bonds payable
c. payments for cash dividends
d. receipts from the sale of investments

2124a. true
b. false

5) When a corporation owns less than 20% of the stock of another company, dividends received are not treated as income.
a. true
b. false

Reference no: EM13596102

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