The GASB statement of cash flows is different from that required in the private sector in which of these ways?
A)It excludes permanently restricted cash flows
B)It excludes investing cash flows
C)It requires reporting operating cash flows using the direct method
D)It is not required unless the reporting entity issues debt.

Question

Quizplus · Accepted Answer

The GASB statement of cash flows requires reporting operating cash flows using the direct method, which is not commonly required in the private sector. The other options are not accurate as the GASB statement of cash flows does include investing cash flows and permanently restricted cash flows, and it is required regardless of whether or not the reporting entity issues debt.

The GASB Statement of Cash Flows Is Different from That