Which of the Following Is True of a Statement of Cash

question 156

Multiple Choice

Which of the following is true of a Statement of Cash Flows for a private sector, private not-for-profit organization?

• A) Four categories are used: Operating, Capital Related Financing, Non-capital Related Financing, and Investing.
• B) If the direct method is used, the not-for-profit must also present a reconciliation between total change in net assets and cash flows from operating activities.
• C) Cash flows must be presented separately for Unrestricted, Temporarily Restricted, and Permanently Restricted categories.
• D) None of the above; all are true.

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Definitions:

Cash Flow

The overall volume of cash inflows and outflows within a corporation, impacting its liquidity significantly.

Operations

The day-to-day activities involved in the running of a business, organization, or system, focusing on efficiently producing goods and services.

Antitrust Risks

The risks associated with violating laws designed to promote competition and prevent monopolies.

Vertical Integration

The combination of two or more stages of production or distribution managed by a single company to increase control and reduce costs along the supply chain.