FAR 8

Question 1

Basic EPS

Answer 1

(NI-preferred div)/ (weighted avg of common shares outstanding)

Question 2

Cash flow from Operating Activities

Answer 2

• Cash receipts and disbursements from transactions reported on IS
• Int paid and received
• Dividends received

Question 3

Cash flow from Investing Activities

Answer 3

-This section displays the cash effects of non-current asset transactions, such as purchases and sales of fixed assets and investments and lending activities.

Question 4

Cash flow from Financing Activities

Answer 4

• Cash receipts and disbursements relating to debt & equity
• Dividends paid

Question 5

Program services

Answer 5

-universities, hospitals, union, child care

Question 6

Support Services

Answer 6

-fundraising, management, G&A, membership development

Question 7

NFP Investing activities

Answer 7

• Investments in PP&E
• Proceeds from sale of work of art or purchase of art
• Proceeds from sale of assets that were received in prior period but whose sale were restricted to investment in equipment

Question 8

NFP Financing Activities

Answer 8

• Proceeds from issuing bonds, notes, mortgages, etc
• Repayment of amounts borrowed
• Receipt of payment restricted for the use of acquiring, constructing, or improving PP&E
• Receipts from contributions for the purpose of establishing a donor restricted endowment fund

Question 9

Donated Services & Materials

Answer 9

• only recognized as rev if its a specialized service
• If collection is exhibited, preserved, and proceeds of sale go back to improving the collection,
• increase assets and support revenues at FV at time of donation.