Which of the following entities is required to use the direct method to report its cash flows?
A) City of Gaston Utility Fund.
B) United Way.
C) General Motors.
D) Oak Grove Water Users Association.

Question

Quizplus · Accepted Answer

The City of Gaston Utility Fund is required to use the direct method to report its cash flows because it is a governmental entity, and the Governmental Accounting Standards Board (GASB) requires the direct method for presenting cash flows for governmental funds.

Which of the Following Entities Is Required to Use the Direct