A nongovernment not-for-profit organization received a cash donation restricted for construction of a new building. How should the donation be reported be reported in the statement of cash flows?

Question

Quizplus · Accepted Answer

In a nongovernment not-for-profit organization, cash donations restricted for long-term purposes like construction of a new building are reported as cash inflows from financing activities in the statement of cash flows.

A Nongovernment Not-For-Profit Organization Received a Cash Donation Restricted for Construction