When Preparing the Statement of Cash Flows for the Proprietary

question 64

Multiple Choice

When preparing the Statement of Cash Flows for the Proprietary Funds, cash flows from noncapital financing activities include all of the following EXCEPT:

• A) Receipts from customers.
• B) Proceeds and repayment of debt not clearly related to capital outlay.
• C) Grants received from and paid to other governments for noncapital purposes.
• D) Transfers to and from other funds.

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Definitions:

Net Realizable Value

The value of an asset that can be realized upon its sale minus a reasonable estimate of the costs associated with either its sale or disposal.

Equity Securities

Financial instruments that represent ownership in a corporation, such as stocks, granting holders a proportion of the corporation's assets and profits.

Preferred Stocks

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with dividends that are paid out before common stock dividends.

Common Stocks

Common stocks represent units of ownership in a corporation, providing voting rights and entitling the shareholder to a share of the company's success through dividends and/or capital appreciation.