Government Cash Flow Statement

Question 1

Which method is allowed

Answer 1

Direct only.

Question 2

How many sections are there

Answer 2

1- Operating
2- Capital and related Financing (Borrowed money to purchase Capital assets (Growth
3- Noncapital Financing (Borrowed money for paying bills or deficits (Non-Growth)
4- Investing (Loan to other, Investment in debt or equity. Interest and dividend income is also investing. Interest paid as well.)

Question 3

Which fund has the SCF

Answer 3

Proprietary funds only. Internal Service Fund and Enterprise Fund

Question 4

City of Mississauga received interest on long-term investment in bonds.

Answer 4

Investing Inflow

Question 5

City of Mississauga levied property taxes to subside its ongoing operations of Water and Sewer Fund

Answer 5

Non-Capital Financing Inflow

Question 6

City of Mississauga enterprise fund earn interest of $25,000 on its investments

Answer 6

Investing Inflow

Question 7

Lee Township was awarded operating grant to subsidize the ongoing operations of its Water and Sewer Fund

Answer 7

Non-Capital Financing

Question 8

Cash inflow to fund the construction of City Hall

Answer 8

None. It’s a General Fund

Question 9

Lee Township’s Water and Sewer Fund paid for the construction costs for the improvement of Water and Sewer System

Answer 9

Capital and related Financing

Question 10

Bond Proceeds of $60,000 to be used to buy long lived assets

Answer 10

$60,000 Capital and related Financing Inflow

Question 11

Bond Proceeds of $60,000 to be used to pay emergency payments, Payroll and Bills

Answer 11

$60,000 Non-Capital Financing

Question 12

Purchase of long-lived assets for $30,750 from the $60,000 bond Proceeds

Answer 12

$(37,750) Capital and related Financing Outflow

Question 13

Accrual basis revenue received from customers was $85,000 beginning accounts receivable was $40,000 and ending receivable were 70,000

Answer 13

$55,000 Operating Cash Inflow

Question 14

Transfer made to other funds amounted to $6,200

Answer 14

($6,200) Non-Capital Financing Cash Outflow

Question 15

Interest paid on bonds used to finance capital assets amounted to $5,000

Answer 15

($5,000) Capital and Related Financing Cash Outflow

Question 16

Principle of $25,000 was paid on debt to finance capital Asset

Answer 16

($25,000) Capital and Related Financing Outflow

Question 17

Long-Live Assets were Sold for Proceeds of $32,000. Gain on Sale was 5,000

Answer 17

$32,000 Capital and Related Financing Inflow.

BIG DIFFERENCE WITH OTHER CFS

Question 18

Interest Received from Investments, $4,100

Answer 18

$4,100 Investing Inflow

Question 19

Dividends received from Investment $910

Answer 19

$910 Investing Inflow

Question 20

Cash paid to suppliers was $17,000 after adding the increase in inventory for the year of $5,000

Answer 20

($17,000) Operating Cash Outflow

Question 21

Accrual basis expense was $7,000 accounts payable began the year at $1,000 and ended the year at $400.

Answer 21

($7,600) Operating Cash Outflow

Question 22

Investments were sold for cash proceeds of $70,000. Loss on sale

Answer 22

$70,000 Investing Cash Inflow.