16. The Cash Flow Statement of a company A. Explains how cash was generated and used during a period B. Explains expenses and revenue for the period C. Tells upper management if they are doing a good job D. Proves the company has money to spend 17. Financing Activities are A. activities that generate cash inflows and outflows related to revenue and expense transactions that affect net income B. activities that generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company's owners, such as selling or repurchasing shares of common stock and paying dividends. C. not important to daily operations of a business D. must be watched closely on a daily basis 18. Capital budgeting decisions A. should only be made over lunch meetings in the later part of the year B. is the process of deciding how much the company can spend on daily supplies C. is the process of planning significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of a new product D. is the process of planning the purchase of bulk quantities of merchandise to resell in your store front 19. In order to fully understand a budget variance, A. it is necessary to pay all outstanding invoices B. it is necessary to analyze both quantity and price variances together C. it is necessary to collect all outstanding accounts receivable D. it is necessary to use a calculator 20. Overhead that is calculated at the beginning of the year using budgeted numbers is called a/an A. Actual Overhead Rate B. Overhead Activity Rate C. Predetermined Overhead Rate D. We never calculate overhead at the beginning of the year