Which of the Following Is True Regarding a Statement of Cash

question 15

Multiple Choice

Which of the following is true regarding a statement of cash flows prepared by a government?

• A)the statement of cash flows will be identical to one prepared by a business
• B)the statement of cash flows will be prepared using the indirect method
• C)the statement of cash flows will have no more than three cash flow classifications
• D)the statement of cash flows will be prepared using the direct method

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Definitions:

Cash Register Tape

A continuous roll of paper used in a cash register to record transactions.

Debt Management

Strategies and processes used by individuals or organizations to handle their debt effectively.

Days' Sales Uncollected

A financial ratio that measures how efficiently a company is collecting revenue from its credit sales by calculating the average number of days that sales remain uncollected.

Voucher System

A financial control mechanism in accounting where vouchers are created for each transaction, and supporting documents are required for authorization before payment.