Which of the Following Is True of a Statement of Cash

question 105

Multiple Choice

Which of the following is true of a Statement of Cash Flows for a private 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:

Operating Profit Or Loss Test

A financial measure used to determine a company's profitability from its core business operations, excluding non-operational factors.

Operating Segments

Components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision-maker in deciding how to allocate resources.

Revenue Test

A criterion used to gauge the amount of revenue generated by a company, project, or product, crucial for decision-making and financial analysis.

Operating Segments

Components of a business that engage in business activities from which it may earn revenues and incur expenses, often reported in financial statements for diversified companies.