Which of the following is true of a Statement of Cash Flows for a private college or university?
A) Either the direct or indirect method is acceptable.
B) Four categories are used: Operating, Capital Related Financing, Non-capital Related Financing, and Investing.
C) Cash flows must be presented separately for Unrestricted, Temporarily Restricted, and Permanently Restricted categories.
D) All of the above are true.

Question

Quizplus · Accepted Answer

GASB requires the direct method, and FASB permits a choice. Private colleges follow standards established by the FASB so either method may be used. Most organizations use the indirect method.

Which of the Following Is True of a Statement of Cash