For the Statement of Cash Flows for an Proprietary Fund

question 45

Multiple Choice

For the Statement of Cash Flows for an Proprietary Fund:

• A)​the direct or indirect method may be used
• B)​cash flows from investing activities include fixed asset acquisitions
• C)​a reconciliation of net operating income to net cash flow from operating activities is required when the direct method is used
• D)​interest paid and interest earned are included in cash flows from operating activities

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Definitions:

Security

Measures taken to protect a person, organization, or property against criminal activity, attack, damage, or unauthorized access.

Adequacy

Adequacy refers to the sufficiency of something to meet a specific requirement, need, or standard, without deficiency.

Distress

Harmful stress characterized by a loss of feelings of security and adequacy

Cumulative Trauma Disorders

Injuries involving tendons of the fingers, hands, and arms that become inflamed from repeated stresses and strains