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:

Market Rate

The prevailing interest rate available in the general market.

Maturity Value

The amount that will be paid to the holder of a financial instrument at its maturity date, including principal and any remaining interest.

Premium

The amount paid for an insurance policy or the amount by which a bond or stock's value exceeds its underlying or face value.

Market Rate

The prevailing interest rate available in the marketplace for securities, loans, and deposits.