On the Statement of Cash Flows Prepared for an Internal

question 17

Multiple Choice

On the statement of cash flows prepared for an internal service fund,cash received from customers and cash paid for operating expenses should be reported as:

• A)investing activities.
• B)operating activities.
• C)noncapital financing activities.
• D)capital and related financing activities.

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Definitions:

Vasoconstriction

The narrowing of the blood vessels resulting from contraction of the muscular wall of the vessels, which increases blood pressure.

Cardiovascular

Pertaining to the heart and blood vessels, relating to the system that circulates blood throughout the body.

Nervous System

An extensive network of neurons and supporting tissues that processes information in the body through electrical and chemical signals.

Coagulation

The action or process of a liquid, especially blood, changing to a solid or semi-solid state.