Proceeds from Bonds Issued for the Construction of Capital Assets

question 10

Multiple Choice

Proceeds from bonds issued for the construction of capital assets are classified on the Statement of Cash Flows for an Enterprise Fund as

• A)Cash Flows from Operating Activities.
• B)Cash Flows from Noncapital Financing Activities.
• C)Cash Flows from Capital and Related Financing Activities.
• D)Cash Flows from Investing Activities.

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Definitions:

Diminution in Value

A reduction in the worth or market value of property.

Repairing

The act of fixing or restoring something that is broken or damaged to a good condition.

Direct Physical Loss

Damage or loss of property directly resulting from an identifiable event or cause, without intervening factors.

Property Damage

Physical damage to, or destruction of, tangible property, often resulting in financial loss.