Whirlpool purchases land in Tennessee to build a new factory. This is listed as ____________ on the statement of cash flows.
A) cash flows from operating activities
B) cash flows from financing activities
C) a liability
D) cash flows from investing activities
E) operating expenses
Question 2
Evergreen Corporation makes a product where quality is measured by counting the number of rejects. Based on this information, what else is likely true about their product?
A) It is labor intensive to produce because people are the most utilized resource.
B) They produce a service, not a good.
C) Their customers consume their product immediately after production.
D) They produce a good and use a mixture of labor and material in the production process.
E) They measure production quality by rating the level of customer satisfaction.
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