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 true about internal service funds as reported in the fund. As a consequence of these transactions, the insurance fund would report on its statement of net position, A city makes an interest payment of $6 million on its utility fund revenue bonds that were issued to finance new sewer lines. In the Statement of Net Assets, the net assets of a proprietary fund should be displayed in, Unrestricted Net Assets; Restricted Net Assets; Invested in Capital Assets, Net of Related, A Statement of Revenues, Expenses, and Changes in Fund Net Assets should include which, Nonoperating revenues and expenses, Capital Contributions and Other Changes in Net, In which of the following circumstances must an enterprise fund be used to account for the, To finance the acquisition of plant facilities, a newly created electric utility issues. 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. Payment for the purchase of equipment. In the city's government wide statements, which would be correct? Which of the following factors are considered by rating agencies when considering revenue. Before analyzing the different types of positive and negative cash... Types of Cash Flow. In the city's government-wide statement of net position which would be correct? Companies look to generate positive cash flow. Financial statements include the balance sheet, income statement, and cash flow statement. What basis of accounting do enterprise and internal service funds use? C. Proceeds from the sale of marketable securities. In both the fund statements and the government-wide statements, business-type activities and, The operating statement required as one of the three basic financial statements for, The amounts reported in proprietary fund statements are generally the same as those reported, Governments are required to prepare a statement of cash flows for proprietary funds, but not, GASB Statement No. Also, proceeds from the sale of a division or cash out as a result of a merger or acquisition would fall under investing activities. Cash Flow from Investing Activities Understanding Cash Flow from Investing Activities. Cash flow from investing activities involves long-term uses of cash. For example, a company might be investing heavily in plant and equipment to grow the business. 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 Generate revenues sufficient to cover the full costs of providing services. Which of the following is not a proprietary fund? In the utility fund statement of cash flows, the payment would be reflected as a cash inflow from, A utility fund temporarily invests in the proceeds from the issuance of revenue bonds in U.S. Treasury bills and receives interest of $300,000. The payable should be reported in the governmental activities column and the receivable in the business-type activities column. However, companies can have negative cash flow, even profitable companies. Outbound cash flow is any money a company or individual must pay out when conducting a transaction with another party. Cash flow from financing activities (CFF) is a section of a company’s cash flow statement, which shows the net flows of cash used to fund the company. 62, as well as any FASB pronouncement issued since the issuance of Statement No. Cash flow from Investing Activities is the second of the three parts of the cash flow statement that shows the cash inflows and outflows from investing in an accounting year; investing activities includes cash flows from the sale of fixed asset, purchase of a fixed asset, sale and purchase of investment of business in shares or properties, etc.