Payments received by a city utility fund would appear on a statement of cash flows for government funds

Finance Dec 18, 2020

Payments received by a city utility fund would appear on a statement of cash flows for government funds.

a. True

b. False

Expert Solution

The correct option is (a).

The statement mentioned above is true.

Payment received by a city utility fund would appear on a statement of cash flows for government funds because this payment of utility fund is considered as a general fund which has been provided by the government. So, any payment received by this fund would be required by the state government to disclose it in their cash flow statement as government fund. This will represent an equitable and fair allocation of funds publicly.

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