Not-For-Profit Organizations Should Report Interest and Dividends Earned and Restricted

question 49

Multiple Choice

Not-for-profit organizations should report interest and dividends earned and restricted for long-term purposes in which of the following cash flows categories?

• A) Operating
• B) Financing.
• C) Capital financing.
• D) Investing.

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Definitions:

Working Capital Management

The process of managing a company's short-term assets and liabilities to ensure it has sufficient liquidity to run its day-to-day operations.

Cash Requirements

Cash requirements refer to the total amount of cash a company needs to satisfy its operational expenses and financial obligations in a given period.

Long-Term Debt

Loans and financial obligations lasting more than one year, used as a means for business financing.

Corporate Ownership

Refers to the ownership of shares in a corporation, which represents claims on the corporation's assets and earnings.