Which of the Following Is True Regarding the Statement of Cash

question 69

Multiple Choice

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

• A) A reconciliation is required, reconciling operating income in the Statement of Revenues, Expenses, and Changes in Net Assets to the cash flows provided (used) by operating activities.
• B) All purchases of capital assets are reported as outflows in the investing activities section.
• C) Both of the above are true.
• D) Neither of the above is true.

---

Definitions:

Double-declining-balance

An accelerated depreciation method that doubles the normal depreciation rate.

Salvage Value

The estimated residual value of an asset at the end of its useful life, representing what it could potentially be sold for or scrapped.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, often used to determine a company's actual value.

Double-declining-balance

A method of accelerated depreciation where the depreciation expense decreases over time, doubling the rate of straight-line depreciation.