Which of the following is true regarding the Statement of Cash Flows for a public college?
A) The direct method must be used.
B) The statement is in the same format required for state and local governmental enterprise funds.
C) Both A and B are true.
D) Neither A nor B is true.

Question

Quizplus · Accepted Answer

GASB requires the direct method, and FASB permits a choice. Public colleges and universities following accounting standards established by the GASB so the Statement of Cash Flows would be prepared using the direct method. The statement of cash flows for a public college has four sections and is in the same format as required for state and local governmental enterprise funds.

Which of the Following Is True Regarding the Statement of Cash