GASB Statement No.34 mandates that the indirect method be used for the cash flow statement of proprietary funds.

Name: GASB Statement No.34 mandates that the indirect method be used for the cash flow statement of proprietary funds.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

GASB Statement No. 34 allows both the direct and indirect methods for presenting the cash flow statement of proprietary funds, but it requires a reconciliation of net operating revenues to net cash provided (used) by operating activities if the direct method is used.