Which of the following is true about the statement of cash flows for the proprietary funds of a state or local government? The indirect method of reporting cash flows from operating activities is allowed although the direct method is recommended. The structure of the statement is virtually identical to that of a for-profit business. The statement is divided into four separate sections of cash flows. Amounts spent on capital assets are reported in a separate section from amounts raised to finance those capital assets.

Q: f a company has both an inflow and outflow of cash related to property, plant, and equipment, the…

A: Cash flow statement keeps the record of all the cash inflows and outflows in the business.

Q: In a governmental fund, which one of the following constitutes revenue?a. Cash received from another…

A: Tax: It refers to a financial obligation or charge that is imposed by the government on the income,…

Q: Which of the following adjustments is necessary to move from governmental fund financial statements…

A:

Q: Please answer questions CASH BASIS VS ACCRUAL BASIS  The IPSASB developed the IPSASs for…

A: Companies could use one of two accounting techniques: cash basis or accrual basis. The phrase "time…

Q: Which of the following is an example of an interactivity transaction?a. Money is transferred from…

A: Interactivity transactions:   The transactions which occur between the government funds and the…

Q: local government's basic financial statements would include a statement of cash flows for all

A: Proprietary Fund Types

Q: Negotiable instruments are transferable in nature, allowing the holder to take the funds as cash or…

A: Negotiable instrument can be defined as the documentation that guarantees the payment of a specified…

Q: IPSASB developed

A: The IPSASB's current activities area unit centered on the event of International Public Sector…

Q: Interperiod equity measurement for governmental funds determines whether a. there is a positive cash…

A: Given: The determination of the measure of the inter-period equity for the government funds.

Q: benefits of Cash Flow Information

A: Cash Flow Information provides information on changes in cash flow over a particular period.

Q: The primary sources of funds available to a business include all of the following excepta. debt…

A: The mix of equity and debt is a business organization is known as the capital structure of the…

Q: Which of the following statements is correct concerning a governmental entity’s combined statement…

A:

Q: As used in governmental accounting, expenditures are decreases in…

A: As per the governmental accounting, in order to recognise expenditure, the modified accrual basis is…

Q: It is important to understand the difference between custodial and trust funds. How many financial…

A: However, custodial funds are not covered in any trust fund types under the GASB criteria. People,…

Q: Which of the following is not an economic purpose of financial instruments?   a Allows transfer of…

A: b Permit transfer of fund that allows sharing of inherent risk associated with the cash flows coming…

Q: statements

A: Net position, statement of net cost and statement of cash flows are common for both for profit…

Q: Which of the following is true about the statement of cash flows for the proprietary funds of a…

A: In the statement of cash flows for the proprietary funds of a state or local government, Amounts…

Q: Using information in the relevant IPSASs, give a comprehensive definition (with examples) of revenue…

A: Cash flow statement Cash flow statement which are used to assess the information of total net…

Q: What is the underlying reason a governmental unit uses separate funds to account for its…

A: The GASB is the board that provides the guideline to the governmental units about proper accounting…

Q: Which of the following accounts are used as income statement-like accounts in investment trust…

A: An income statement is one of the important financial statements of the company. It can be defined…

Q: Categorize the following as source or use of funds. Also classify them under operating, investing…

A: The funds flow statements shows the inflow and outflow of funds and cash flow statements helps in…

Q: How to record a trade-in? Government Wide :Record at ticket price of the new asset Fund statement:…

A: The correct option is Option “C”.

Q: A cash flow statement is considered a major financial statement for a business and nonprofit entity.…

A: For any type of organisation, cash flow activity is compulsory, it is a part of the financial…

Q: Explain the modified accrual basis of accounting. Why is it used for governmental fund financial…

A: Modified accrual basis of accounting is a method of accounting where the revenues are recorded when…

Q: In the Consolidated Statement of Cash Flows, Fairfield Communities, Inc. reported the following…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Which of the following statements is incorrect concerning a governmental entity’s statement of cash…

A: Governmental entity’s statement of cash flows: It is the statement which includes the four…

Q: The IPSASB developed the IPSASs for government entities and departments who use the fund or cash…

A: SOLUTION BASIS OF ACCOUNTING IS THE TIME VARIOUS FINANCIAL TRANSACTIONS ARE RECORDED . THE CASH…

Q: How is the Statement of Cash Flows for Proprietary Funds similar and dissimilar to a Statement of…

A: Similarities between Statement of Cash flows for proprietary funds and for profit business: These…

Q: Which of the following is true regarding government-wide financial statements?a. The government-wide…

A: A cash flow statement is a part of financial statement which shows how cash has been generated by a…

Q: Which of the following is an example of an interactivity transaction? Money is transferred from the…

A: Interactivity transactions:   The transactions which occur between the government funds and the…

Q: Why is a private not-for-profit entity more likely to use the direct method of reporting operating…

A: Cash from operating activity is calculated from direct method and indirect methods. In indirect…

Q: ere cash basis and accrual basis. These two bases differ in many respet though there are some…

A: Cash basis of accounting refers to the refers to a method of accounting which is majorly used in…

Q: All proprietary fund financial information is reported in the Business-type Activities column of the…

A: Government-wide financial statements: The financial statement which contains information regarding…