F6M2

Question 1

donation of marketable securities with a restriction are accounted for how

Answer 1

Proceeds from the sale of assets that were received in prior periods and whose sale proceeds were donor‑restricted to investment in long-lived assets are displayed on the Statement of Cash Flows as cash flows from investing activity.

Question 2

donation of cash without restriction is reported how

Answer 2

operating activities

Question 3

a donor-restricted gift limiting its use to the purchase of a long-term asset is reported how

Answer 3

financing activities

Question 4

purchase of a long lived asset is a

Answer 4

investing activity

Question 5

dividend income is classified as a

Answer 5

operating activity

Question 6

interest expense (payment) on debit is classified as a

Answer 6

operating activity

Question 7

interest income is classified as a

Answer 7

operating activity

Question 8

A new finance lease is signed for copiers used in support of general administrative activities is classified a

Answer 8

The initial execution of a finance lease is a non cash transaction (absent any cash due at signing or other terms). Although finance leases are disclosed as a non cash transaction, they are not displayed in the body of the statement of cash flows.