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Which of the Following Is True Regarding the Statement of Cash

Question 86

Multiple Choice

Which of the following is true regarding the Statement of Cash Flows required by the GASB for proprietary funds?


A) Either the direct or indirect method may be used.
B) Interest payments would be recorded as investing activities.
C) Acquisition of capital assets with bond proceeds would be a decrease in cash provided by capital and related financing activities.
D) Interest received on investments is reported as cash flows from operating activities.

Correct Answer:

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