Which of the Following Is True Regarding the Statement of Cash

question 117

Multiple Choice

Which of the following is true regarding the Statement of Cash Flows required by the GASB for proprietary funds?

• A) Either the direct or indirect method may be used.
• B) Interest payments would be recorded as investing activities.
• C) Acquisition of capital assets with bond proceeds would be a decrease in cash provided by capital and related financing activities.
• D) Interest received on investments is reported as cash flows from operating activities.

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Definitions:

Naming

The act or process of assigning or creating a name for something or someone.

Retrieval

The process of obtaining information or data from a storage location or database.

Replacement

The process of substituting one thing for another, such as a joint replacement surgery where a damaged joint is replaced with an artificial one.

Filing Process

The systematic procedure of organizing and categorizing documents, records, or data for efficient retrieval and safekeeping.