With respect to the Statement of Cash Flows for a not-for-profit organization, donor restricted cash that must be used for long term purposes is classified as cash flows from financing activities.

Question

Quizplus · Accepted Answer

Donor-restricted cash intended for long-term purposes is considered a financing activity because it involves funds that are restricted for specific uses, similar to how financing activities involve obtaining resources for long-term use.

With Respect to the Statement of Cash Flows for a Not-For-Profit