Which of the Following Is Not True Regarding the Statement

question 96

Multiple Choice

Which of the following is not true regarding the Statement of Cash Flows for proprietary funds?

• A) At the bottom of the statement, net income is reconciled to cash flows from operations.
• B) Interest and dividends received are recorded as investing activities.
• C) The direct method is required for reporting cash flows from operations.
• D) Four categories of cash flows are used.

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Definitions:

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Utility Function

A rephrased definition: A tool in economics to quantify an individual's satisfaction from consuming different bundles of goods and services.

Price

The sum of money needed to buy a product or service.

Utility Function

A mathematical representation expressing an individual's preference ordering over a set of goods and services, showing the level of satisfaction or utility derived from various bundles of goods.