In what way would the statement of cash flows of a government owned electric utility differ from that of a privately owned counterpart? The payable should be reported in the governmental activities column and the receivable in the business-type activities column. In a year in which the repair service acquired an unusually large amount of repair equipment, the amount recorded as an expense in the internal service fund would be, Less than if the repair service were accounted for in the general fund, A school district's internal service fund has cash on hand at year-end of $2 million. As you can see below, investing activities include five different items, which total to arrive at the net cash provided by (used in) investing. Cash Flow from Investing Activities Understanding Cash Flow from Investing Activities. d. Cash proceeds from collection on loans. On its government wide statements this amount would be recorded as an asset in the, In its first year of operation, a self-insurance internal service fund billed the general fund $500,000 for premiums. Outflow: purchase of PP&E including software and website development 2. investing cash flows) are the cash inflows and outflows that relate to acquiring and disposing of operating assets and investments in other companies (current and long-term), lending money, and … Which of the following is NOT true about internal service funds as reported in the fund. Per GASB guidelines, the premiums charged to the other funds, Must, in total and over time, cover the actual losses incurred by the fund, If a government accounts for self-insurance activities in its general fund, the premiums charged in excess of actual claims should be accounted for as. Outbound cash flow is any money a company or individual must pay out when conducting a transaction with another party. Outflow: acquisitions, net of cash acquired 4. A city maintains a staff of internal auditors. a) In a separate restricted asset category on the statement of net assets. Which of the following projects is a state university most likely to finance with revenue bonds rather than general obligation bonds? The purchase or sale of a fixed asset like property, plant, or equipment would be an investing activity. Outflow: purchase of marketable securities 3. Transactions That Cause Positive Cash Flow From Financing Activities Issuing equity or stock, which is sold to investors Borrowing debt from a creditor or bank Issuing bonds, which is debt that investors purchase For more on cash flow and how companies utilize the cash flow statement, please read What Is A Cash Flow Statement? Let’s take a closer look at each of these items for Amazon.Amazon’s investing activities include: 1. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Cash advance to borrowers. Billing rates must be set to cover the full cost of providing the goods or services. Which of the following are required basic statements of a Proprietary Fund? What basis of accounting do enterprise and internal service funds use? The reporting of activities by an Enterprise Fund is most likely optional if: a) Fees are charged to external users for goods or services. Which of the following is a valid argument for separate accounting principles for proprietary, The measurement focus on all economic resources is more consistent with the GASB's, Which of the following is a key reason for using business-type accounting to account for, Which of the following is NOT a budget typically prepared for an activity accounted for in a, A governmental entity reports its utility services provided to the citizens in a proprietary. Payment for the purchase of equipment. A proprietary fund of a governmental entity has donor-restricted assets on its balance sheet. Cash flow from investing activities involves long-term uses of cash. What You Should Know Operating Activities, Cash Flow From Financing Activities – CFF. Cash flow from investing activities includes any inflows or outflows of cash from a company's long-term investments. Any changes in the cash position of a company that involves assets, investments, or equipment would be listed under investing activities. C. Proceeds from the sale of marketable securities. c. Cash proceeds from borrowing. Cash flows from Investing Activities include which of the following as cash inflows Interest and dividends received Cash flows from Capital and Related Financing Activities include which of … Which of the following is not a GASB-required statement for proprietary funds? The payable and the corresponding receivable would be eliminated in the consolidation process and thus would not be reported. However, companies can have negative cash flow, even profitable companies. Cash flow from investing activities includes any inflows or outflows of cash from a company's long-term investments. Of this amount, $75,000 was intended for catastrophes. Operating activities are those that pertain to a company's core business activities, such as manufacturing, distributing, marketing and selling a service. These long-term purchases would be cash-flow negative, but a positive in the long-term. The appropriate basis of accounting for the proprietary funds of a governmental entity is, Which of the following is a valid reason for governmental entities to engage in business-type. The bonds are also guaranteed by the city itself. Which of the following factors are considered by rating agencies when considering revenue. Which of the following would not be included in the computation of the amount to be recognized as a landfill closure expense?
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