In 20X9, a private not-for-profit hospital received a $200,000 cash contribution to its endowment fund. During the year, hospital administration invested $150,000 of the funds. Which of the following statements regarding the effect of these transactions on the preparation of the hospital's statement of cash flow is true?
A. The $200,000 contribution will appear in the financing activities section of the cash flow statement as a cash inflow.
B. The $150,000 contribution will appear in the financing activities section of the cash flow statement as a cash inflow.
C. The $200,000 contribution will appear in the investing activities section of the cash flow statement as a cash inflow.
D. The $150,000 investment will appear in the investing activities section of the cash flow statement as a cash inflow.
Answer: A
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The following information was taken from the financial statements of Brandon's Motor Shop: Total current assets $ 53,000 Property, plant, and equipment 6,000 Current liabilities 21,000 Long-term liabilities 4,000 Owner's equity 34,000 Beginning inventory 31,000 Ending inventory 33,000 Cost of goods sold 152,000 Net income 42,000 The current ratio for Brandon's Motor Shop is closest to
a. 1.3 to 1. b. 2.4 to 1. c. 2.5 to 1. d. 1 to 2.5.
Which the following is not a reason for a public company to receive an audit?
a. Potential bias in providing information. b. Closeness between a user and the organization. c. Complexity of the processing systems. d. Remoteness between a user and the organization.
They agreed to admit Ramelow into the business for a one-third interest in the new partnership. Ramelow contributes $22,000 cash in exchange for the partnership interest. Assume that Floyd and Merriam shared profits and losses equally before the admission of Ramelow. Which of the following is the correct journal entry to record the above admission?
Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows:
Which of the following would be considered a capital expenditure?
a. Cost to acquire a printing press b. Cost to lubricate a machine c. Cost to replace some light bulbs d. Cost to paint the factory wall