Rule: Government proprietary funds (enterprise and internal service) prepare a statement of cash flows in a manner similar to commercial enterprises.Choice "D" is correct. Cash activities associated with the ongoing and central activities of an entity would be classified as operating activities on its statement of cash flows. The HCDA is in the business of providing loans through a loan program. Cash activities associated with the HCDA's program loans, consistent with its charter, would be classified as operating activities.Choices "b", "a", and "c" are incorrect per the rule above.
