Which of the Following Is True of a Statement of Cash

question 111

Multiple Choice

Which of the following is true of a Statement of Cash Flows for a private college or university?

• A) Either the direct or indirect method is acceptable.
• B) Four categories are used: Operating, Capital Related Financing, Non-capital Related Financing, and Investing.
• C) Cash flows must be presented separately for Unrestricted, Temporarily Restricted, and Permanently Restricted categories.
• D) All of the above are true.

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Definitions:

Sales Forecast

An estimate of the amount of revenue that a company expects to generate from the sale of goods or services in a future period.

Planning Horizon

The future time period over which plans and strategies are developed and analyzed.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the expected costs.

Quantity Purchased

The total amount of a product that a consumer or company acquires.