The Three Major Categories Included on the Statement of Cash

question 49

Multiple Choice

The three major categories included on the statement of cash flows are ________.

• A) investing, operating, and financing activities
• B) investing, capital, and financing activities
• C) investing, operating, and contracting activities
• D) financial, operating, and internal control activities

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Definitions:

Revenue Recognition

The accounting principle that revenue should be recorded when it is earned, regardless of when the payment is received.

Federal Grant

A sum of money given by the federal government to a state, organization, or individual for a specific purpose or project.

Expendable Trust Fund

A fund consisting of assets held in a trust that can be used up or expended, typically for designated purposes as per the trust's terms.