A donor provides a large cash contribution that is to be used for acquisition of a new building. Under FASB standards, how would this contribution be reported by a not-for-profit organization on its statement of cash flows?
A. Financing activity.
B. Operating activity.
C. Investing activity.
D. Capital and related financing activity.
Answer: A
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Simple interest on a $25,000, 8%, 18-month note is
A) $22,000. B) $23,000. C) $3,000. D) $2,000.
Capital investment analysis can be applied in case of expensive and long-term projects
Indicate whether the statement is true or false
Posterior probabilities are _____ probabilities.
A. independent B. marginal C. joint D. conditional
In general, firms should use their weighted average cost of capital (WACC) to evaluate capital budgeting projects because most projects are funded with general corporate funds, which come from a variety of sources. However, if the firm plans to use only debt or only equity to fund a particular project, it should use the after-tax cost of that specific type of capital to evaluate that project.
Answer the following statement true (T) or false (F)