F6 M2

Question 1

operating activity item examples

Answer 1

1) receipts/payments of settlement of lawsuits
2) proceeds from insurance settlements
3) refunds from suppliers or customers
4) charitable contributions made by NFP
5) contributions
6) program revenue
7) interest and dividend income
8) proceeds from sale of financial assets not restricted
9) cash payments for interest
10) agency transactions
11) unrestricted designated sources used for long-lived assets

Question 2

investing activity item examples

Answer 2

1) investments in PP&E
2) proceeds from sale of works of art or disbursements from purchases of art
3) proceeds from sale of assets that were received in prior period and whose sale proceeds were restricted to investment in equipment

Question 3

financing activity item examples

Answer 3

1) proceeds from issuing bonds, mortgages, notes, and other ST or LT borrowing
2) repayment of amts borrowed
3) receipts for contributions restricted for purpose of acquiring, constructing or improving PP&E and equipment or other long-lived assets
4) receipts from contributions restricted for purpose of establishing or increasing a donor-restricted endowment fund

Question 4

noncash transactions disclosed in statement of cash flows

Answer 4

1) contributed securities
2) CIP and other fixed asset purchases included in AP
3) contributions of beneficial interests
4) noncash debt refinancing transactions

Question 5

supplemental reconciliation of cash flow from operations (direct method)

Answer 5

NFPs who use direct method of reporting net cash flows from operations not required to provide recon of change in net assets for operating activities

Question 6

how should an NFP report amts paid for interest in statement of cash flows using indirect method?

Answer 6

interest paid will be included as a supplemental disclosure

Question 7

required supplemental information (RSI)

Answer 7

a section included in reporting for governmental entities