To Facilitate the Combination of Utility Financial Statements with the Statements

question 35

True/False

To facilitate the combination of utility financial statements with the statements of other enterprise funds,GAAP permits utilities to follow the customary format used by nonutility business organizations.

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Definitions:

Net Income

The amount of money that remains after subtracting all expenses, taxes, and costs from total revenue.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed.

Bonds Payable

Long-term liabilities representing money a company must pay back to bondholders by a specified maturity date.

Operating Activities

The primary revenue-generating activities of an organization, as opposed to investing and financing activities.