With respect to the Statement of Cash Flows for a not-for-profit organization, the purchase of equipment would be considered an investing activity.

Question

Quizplus · Accepted Answer

The purchase of equipment for a not-for-profit organization would be considered an investing activity in the Statement of Cash Flows because it involves the acquisition of long-term assets that will be used in the organization's operations for several years. Cash inflows and outflows related to investing activities are reported separately from those related to operating and financing activities in the Statement of Cash Flows.

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