A public university received a restricted donation from one of their trustees. The donation was to be used to pay debt service costs for one year on the new athletic field. When received, the donation will be reported on the statement of cash flows as

Question

Quizplus · Accepted Answer

The donation is specifically restricted for paying debt service costs associated with a new athletic field, which falls under capital and related financing activities on the statement of cash flows for a public university. This category includes transactions related to acquiring, constructing, and improving capital assets, as well as servicing the related debt.

A Public University Received a Restricted Donation from One of Their