Which of the Following Is True of a Statement of Cash

question 69

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) Either the direct or indirect method is acceptable.
• 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:

Weighted-Average

A method used to calculate an average whereby different values have different levels of importance or "weights".

Cost of Goods Sold

The immediate expenses related to the manufacture of products sold by a business, encompassing both materials and workforce.

Perpetual System

An inventory management method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

FIFO Perpetual

An inventory management system where the first items purchased (First-In) are the first to be sold or used (First-Out), continuously updated.