A Government Will Prepare a Statement of Cash Flows for Which

question 32

Multiple Choice

A government will prepare a statement of cash flows for which of the following funds?

• A)General Fund
• B)Enterprise Fund
• C)Debt Service Fund
• D)Agency Fund

---

Definitions:

Liquidation

The process of converting assets into cash, often during the winding down of a business or the selling off of stock.

Preferred Stock

Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shareholders typically receive dividends before common shareholders.

Cumulative Dividends

Dividends that are owed and accumulate if not paid in a given period, typically associated with preferred shares.

Common Stock

A type of security that represents ownership in a corporation, with holders having a claim on the company's assets and earnings.