How would the receipt of the grants be reported on the statementof cash flows fo

Question

How would the receipt of the grants be reported on the statementof cash flows for the Water and Wastewater Enterprise Fund and theCable Enterprise Fund, respectively?

A. Cash flows from capital and related financing activities forthe Water and Wastewater Enterprise Fund and cash flows fromnoncapital financing activities for the Cable Enterprise Fund.

B. Assuming the Cable Enterprise Fund chose to use the proceedsof its grant fo capital needs, both funds would reflect the grantreceipt in cash flows from capital and related financingactivities.

C. Cash flows from capital and related financing activities forthe Water and Wastewater Enterprise Fund and cash flows fromoperating activities for the Cable Enterprise Fund.

D. Both funds would report the grant receipt as cash flows fromoperating activities.

Explanation / Answer

The receipt of grants are to be reported on thestatement of Cash flows for the water & Waste water Enterprise fund as C Cash flows from Capital and related financingactivities for the Water & WasteWater Enterprise Fund &Cash Flows from operating activities for the CableEnterprise Fund.

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