Which of the Following Is True Regarding the Statement of Cash

question 41

Multiple Choice

Which of the following is true regarding the Statement of Cash Flows for a public college?

• A) The indirect method must be used.
• B) The statement is in the same format required for state and local governmental enterprise funds.
• C) Both of the above are true.
• D) Neither of the above is true.

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Definitions:

Subchapter S Corporation

A form of corporation in the United States that meets specific Internal Revenue Code requirements, allowing it to be taxed as a pass-through entity.

Constituents

Individuals or groups that have a stake or interest in the actions and success of an organization, business, or political entity.

For-Profit Organization

An entity that operates with the primary goal of earning profit for its owners or shareholders.

Privately Owned

Describes businesses or assets owned by individuals or companies and not by the government or the public.