Which of the Following Financial Statements Would Be Prepared for Enterprise

question 2

Multiple Choice

Which of the following financial statements would be prepared for enterprise funds?

• A)a statement of net position
• B)a statement of cash flows
• C)a statement of revenues,expenses,and changes in net position
• D)All of the above would be prepared.
• E)Only a and c would be prepared.

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Definitions:

Discount Rate

This is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Salvage Value

The expected sale price of an asset at the end of its effective life.

Net Operating Cash Flows

The amount of cash generated by a company's normal business operations after paying operating expenses and taxes.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.