Which of the following is true regarding the Statement of Cash Flows for a private college?
A) Cash Flows from Operating Activities must be presented on the direct method.
B) Cash purchases of capital assets are reported as outflows in the investing activities section.
C) Both A and B are true.
D) Neither A nor B is true.

Question

Quizplus · Accepted Answer

Cash purchases of capital assets are reported as outflows in the investing activities section for a private college. GASB requires the direct method, and FASB permits a choice. Private colleges follow standards established by the FASB so either method may be used.

Which of the Following Is True Regarding the Statement of Cash