A Statement of Cash Flows Is Prepared for Enterprise Funds

question 74

True/False

A statement of cash flows is prepared for enterprise funds but not for internal service funds.

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Definitions:

Constrained Resource

A factor that limits the output of a process or system, such as a machine, worker, or material that is in short supply.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes to covering fixed costs and profit.

Special Order

An order for goods or services that is outside the company's normal production routine or product range.

Resale Value

The estimated amount that an asset or good will be sold for at the end of its useful life.