Problem 2: true/false questions 1. GASB guidance for the statement of cash flows results in related transactions being reported in one section of the statement instead of in two sections. 2. The format and disclosures of the statement of cash flows reported by a state or local government are more user friendly than the format and disclosures of the statement of cash flows reported by for-profit entities. 3. Because of low fares and all the free rides the Chicago Transit Authority is required to give to certain classes of riders, the CTA needs noncapital financing in order to sustain its operations. 4. When legislation was passed by the State to institute a State lottery, the General Assembly stated that the operating cash flows from the State lottery would be used to support education.