Which of the Following Is True of a Statement of Cash

question 45

Multiple Choice

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

• A) Four categories are used: Operating, Capital Related Financing, Non-capital Related Financing and Investing
• B) Either the direct or indirect method is acceptable
• 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:

Acquisition Cost

The total cost associated with acquiring an asset or investment, including the purchase price and all related expenses.

Due Diligence Fees

Costs associated with the research and analysis conducted before entering into an agreement or transaction.

Fair Value

The financial gain on unloading an asset or the financial duty to convey a liability in a coordinated market activity at the established valuation date.

Costs of Issuing

Expenses associated with the issuance of stocks or bonds, including underwriting, legal, and registration fees.