How Does a Government Statement of Cash Flows (SCF)differ from One

question 24

Multiple Choice

How does a government statement of cash flows (SCF) differ from one prepared by a business enterprise?

• A)A government SCF must be prepared using the direct method.
• B)A government SCF must be prepared using the indirect method.
• C)A government SCF reconciles cash and cash equivalents, not just cash.
• D)A government SCF has a section for capital transactions.

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Definitions:

Price of Goods

The amount of money required to purchase a particular product or service in the marketplace.

Advancement in Technology

describes improvements in technology that often lead to increased productivity, efficiency, and the creation of new products or processes.

Number of Producers

Refers to the total count or quantity of manufacturers or suppliers of a particular good or service in a market.

Input Prices

The cost of goods, services, and materials that are used to produce other goods or services.