Which of the Following Is Not True Regarding the Statement

question 119

Multiple Choice

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

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

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Definitions:

Resources Employed

Refers to the allocation and utilization of resources such as labor, capital, and materials to produce goods and services.

Output of Industry

The total amount of goods and services produced by an industry or sector within a specific period, often used to gauge economic health and productivity.

Economic Profit

The difference between total revenues and total costs, taking both explicit and implicit costs into account, indicating the additional income over the opportunity cost of capital.

Industry Z

An unspecified sector of the economy, used as a placeholder to discuss economic concepts without specifying an industry.