NFPs

Question 1

How should construction of a new building be reported in the statement of cash flows?

Answer 1

Financing Activities

Financing - For long term purposes

Question 2

Accounting standards require classification for expenses by

Answer 2

Functional AND Natural classifications

Question 3

What falls under Financing Activities?

Answer 3

Fixed asset construction, acquisition or improvement, term endowments, or permanent endowments. Cash received from investment income restricted by donor stipulation

Question 4

All expenses are reported as decreases in which net asset class?

Answer 4

Net assets without donor restrictions

Question 5

Is modified accrual acceptable for NFP institutions?

Answer 5

No, only accrual accounting