Government and NFP Accounting

Question 1

How are governmental funds segregated?

Answer 1

• Governmental funds are meant for capital projects
• Custodial and Trust funds are reported in Fiduciary Funds
• Enterprise funds are reported under Proprietary Funds

Question 2

If a NFP sells an asset (paintings for example), to finance purchase of another asset (paintings, for example), which Cash Flow Statement would it be shown on?

Answer 2

The way to think about it is, you bought or sold an asset that you expect to assist you in generating income in a business so:

Cash Flow from Investing Activities