With respect to the Statement of Cash Flows for a private 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

The Statement of Cash Flows uses the standard FASB categories; operating, investing and financing. Restricted contributions or restricted investment proceeds that will be used for long-term purposes such as endowments or plant, are reported as financing activities.

With Respect to the Statement of Cash Flows for a Private