Discuss the similarities and dissimilarities between the Statement of Cash Flows for Proprietary Funds and a Statement of Cash Flows of a for-profit business. Solution Cash Flow (Under US GAAP) Proprietary Fund For profit business Similarities Differences .

1. Discuss the similarities and dissimilarities between the Statement of Cash Flows for Proprietary
Funds and a Statement of Cash Flows of a for-profit business.
Solution
Cash Flow (Under US GAAP)
Proprietary Fund
For profit business
Similarities
Differences
Cash Flow (Under US GAAP)
Proprietary Fund
For profit
business
Similarities
1. Direct Method is used
2. Cash flow from operating activities, Financing activities and investing
activities are taken into account
3. Reconciliation of operating income (or loss) to Net Cash Provided (Used)
by operating activities are shown as an integral part of the financial system
Differences
1. Only direct method is used to calculate the cash flow from operating
activities
2. Cash flow from Financing activities are segregated into