Which of the following is true regarding the Statement of Cash Flows for a public college?
A) A reconciliation is required, reconciling operating income in the Statement of Revenues, Expenses, and Changes in Net Position to the cash flows provided (used) by operating activities.
B) Cash purchases of capital assets are reported as outflows in the capital related financing activities section.
C) Both A and B are true.
D) Neither A nor B is true.

Question

Quizplus · Accepted Answer

A is true because public colleges are required to provide a reconciliation between operating income in the Statement of Revenues, Expenses, and Changes in Net Position and the cash flows provided by operating activities in the Statement of Cash Flows as per the GASB standards. 
B is true because cash purchases of capital assets are reported as outflows in the capital related financing activities section of the Statement of Cash Flows. Therefore, both A and B are true for a public college's Statement of Cash Flows.

Which of the Following Is True Regarding the Statement of Cash