Cash Flows Must Be Presented Separately in the Statement of Cash

question 56

True/False

Cash flows must be presented separately in the Statement of Cash Flows for the three classes unrestricted, temporarily restricted, and permanently restricted).

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Definitions:

Prior Period Adjustments

Corrections made to a company's financial statements for errors or omissions in previously reported periods.

Revaluation Surplus

The increase in value of an asset, reflected in the company's financial statements, from re-assessing its carrying value to a higher current market value.

Treasury Stock

Shares that were issued and then repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Classification

The systematic arrangement of business transactions and accounts in categories or groups based on similar characteristics for financial reporting and analysis.