Answer:
The correct answer is Option C.
Explanation:
A statement of cash flows shows actual cash movement (inflow / outflow) relating to operating, financing and investing activities of a company. Essentially, there are two methods used in determining cash flows, which are: (i) direct method (ii) indirect method.
The Option C is correct because the movement in income tax payable is used in determining the actual tax paid and this is subtracted from the net income in order to determine the cash flows from operating activities.
The other options are used as adjustments to net income in determining cash flows from operating activities using the indirect method.
D. Eliminates other options is correct. Just took the test.
The choices are:
A. special cause variation.
B. common cause variation.
C. short-term variation.
<span>D. long-term variation.
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The answer is A. special cause variation. In a management-controllable variation, the strategy is to separate common from the special cause of variation. It is all about the management control and not worker control. However, once it is identified the workers should know about it and have the tools to solve it.
Answer:
The expected cash receipts during September are 40% of the sale in September and 60% of the sales in August.
Explanation:
25% of the credit sales are collected in the month of the sale, this is (25% x 0.8) 20% of the sales are collected in the month of the sale.
20% of the sales are for cash.
Therefore 60% of the sales are collected in the next month.
The expected cash recceipts during the month of the sale (September) are
40% (20% of collected sales and 20% of the sales are for cash) of the sale in September and 60% of the sales in August.