Which of the Following Statements Is True Regarding the Statement

question 47

Multiple Choice

Which of the following statements is true regarding the statement of cash flows for a governmental unit?

• A) The statement of cash flows is included in the government-wide and proprietary fund financial statements.
• B) The statement of cash flows is included in the proprietary fund financial statements only.
• C) The statement of cash flows is included in the proprietary and fiduciary fund financial statements.
• D) The statement of cash flows is included in the proprietary fund financial statements only, and the government can choose the presentation format-direct or indirect.

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Definitions:

Available Resources

The assets, materials, and inputs that are available for use in the production of goods and services.

Inferior Technology

Technology that is less efficient or effective compared to the available alternatives.

Production Possibilities Frontier

A curve depicting the maximum feasible combinations of two or more goods or services an economy can produce when all resources are fully and efficiently utilized.

Circular-flow Diagram

A Circular-Flow Diagram represents an economic model visually demonstrating the movement of money through markets between households and companies.