Which of the following is true regarding a statement of cash flows prepared by a government?
A)the statement of cash flows will be identical to one prepared by a business
B)the statement of cash flows will be prepared using the indirect method
C)the statement of cash flows will have no more than three cash flow classifications
D)the statement of cash flows will be prepared using the direct method

Question

Quizplus · Accepted Answer

Governmental entities typically prepare the statement of cash flows using the direct method, as recommended by the Governmental Accounting Standards Board (GASB), which differs from many businesses that often use the indirect method.

Which of the Following Is True Regarding a Statement of Cash