Which of the Following Is Not Correct Regarding the GASB

question 110

Multiple Choice

Which of the following is not correct regarding the GASB Cash Flow Statement?

• A) The reconciliation of income and cash flows from operations starts with operating income.
• B) Fixed Assets acquisitions are reported in the Capital Related Financing Section.
• C) Cash received from Interest and Dividend Income is recorded in the Operating Section.
• D) All of the above are correct.

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Definitions:

Net Income

The amount of earnings remaining after subtracting all costs, taxes, and expenses from total revenue, indicative of a company's profitability.

Common Stockholders' Equity

Equity representing the ownership interest of common shareholders in a company, reflected as the share capital and retained earnings.

Dividends Paid

The sum of money distributed to shareholders from a company's earnings.

Net Income

The total profit of a business after all expenses and taxes have been subtracted from total revenues.