Final answer:
With respect to governmental health care entities, the statement that the Statement of Cash Flows will have three categories is True. These categories usually include Operating activities, Investing activities, and Financing activities.
Step-by-step explanation:
The question is concerned with the categorization of cash flows in governmental health care entities. Governmental entities typically use a version of the Statement of Cash Flows that reflects their activities accurately. When formulating the Statement of Cash Flows, there are different reporting standards for different types of entities. In the context of governmental health care entities, the Governmental Accounting Standards Board (GASB) provides guidelines that may differ from those of nongovernmental entities which follow Generally Accepted Accounting Principles (GAAP). The Statement of Cash Flows for governmental entities does indeed generally consist of three categories: Operating activities, Investing activities, and Financing activities.
Therefore, with respect to governmental health care entities, the statement that the Statement of Cash Flows will have three categories is True.
Universal Generalizations
- State and local governments must approve spending before revenues can be released.
- State and local government budgets supply money for many services and programs.
- The taxes collected by the state and local government are used to pay for various services and programs.
- State and local governments benefit from federal expenditures.