With Respect to the Statement of Cash Flows for a Private

question 19

True/False

With respect to the Statement of Cash Flows for a private not-for-profit organization, donor restricted cash that must be used for long term purposes is classified as cash flows from financing activities.

---

Definitions:

Quantity Variances

Quantity variances are differences between the expected and actual quantities of inputs (materials, labor) used in the production process or during a specific period.

Direct Labor

The wages or salaries paid to employees who are directly involved in the production process of goods or services.

Fixed Budget

A budget that stays the same regardless of changes in activity levels, output, or sales.

Price Variance

The difference between the actual price paid for something and its standard or expected price.