The GASB Statement of Cash Flows Is Different from That

question 27

Multiple Choice

The GASB statement of cash flows is different from that required in the private sector in which of these ways?

• A)It excludes permanently restricted cash flows
• B)It excludes investing cash flows
• C)It requires reporting operating cash flows using the direct method
• D)It is not required unless the reporting entity issues debt.

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Definitions:

Cash Disbursements

Money paid out by a business during a period, including expenses, dividend payments, and investments.

Budgeted Production

The planned level of production output, defined through the budgeting process for a specific period, aiming to meet forecasted demand.

Raw Materials

The initial inputs or primary components used in manufacturing processes to create finished goods.

Production Needs

The specific requirements or quantities of products or materials a company needs to produce within a certain timeframe.