NP-CF Flashcards
A not-for-profit voluntary health and welfare entity should report a contribution for the construction of a new building as cash flows from which of the following in the statement of cash flows?
a contribution to a not-for-profit restricted to long-term purposes like construction shall be reported as a cash flow from financing activities.
Cash flows received from investment income restricted by donor stipulation to the same purposes also are reported as financing activities, not as operating activities.
An unrestricted cash contribution should be reported in a nongovernmental not-for-profit entity’s statement of cash flows as an inflow from:
unrestricted contributions are reported as operating activities.
Cash received from contributions restricted by donors for noncurrent purposes such as fixed asset construction, acquisition or improvement, term endowments, or permanent endowments are classified as financing activities in the statement of cash flows.
Cash received from investment income restricted by donor stipulation to the same purposes also are reported as financing activities, not as operating activities.
