M4 - Not-For-Profit Financial Reporting: Part 2

Question 1

Investing activities in the statement of cash flows should include proceeds from the sale of long lived assets or insurance proceeds associated with the loss of long lived assets. (true or false)

Answer 1

true

Entities that do not capitalize their permanent collections display insurance proceeds from lost, stolen or damaged items on the statement of activities in an appropriate change in net asset classification separate from revenues, expenses, gains, and losses.

Question 2

Cash flows from operating activities in a nongovermental not-for-profit organization include applicable agency transactions, cash contributions without donor restrictions, program income, and interest income or dividend income from investments. (true or false)

Answer 2

True

Question 3

Cash received with donor-imposed restriction limiting its use to long-term purposes (such as construction of a building) is displayed as a financing activity on the statement of cash flows of a not-for-profit organization.(true or false)

Answer 3

True