Proprietary Accounts Are Used to Report the Business-Type Activities of the Federal

question 20

True/False

Proprietary accounts are used to report the business-type activities of the federal government.

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Definitions:

Indirect Method

In the context of cash flow statement preparation, the indirect method adjusts net income for the effects of non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

Statement of Cash Flows

The statement of cash flows is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing debt, obtaining loans, and dividend payments.