Which of the Following Is True Regarding the Statement of Cash

question 113

Multiple Choice

Which of the following is true regarding the Statement of Cash Flows for nongovernmental,not-for-profit organizations?

• A) Either the direct or indirect method may be used.
• B) If a not-for-profit organization received a cash contribution for permanently restricted purposes, that cash contribution would be shown as a cash flow from financing activities.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Machinery And Equipment

Long-term assets used in the production process, representing a significant investment that contributes to a company's operational capabilities.

Long-Lived Assets

Assets that have a useful life of more than one year, used in the operation of a company and are not intended for sale, including property, plant, and equipment.

Machinery And Equipment

Fixed assets used in the operation of a business to produce goods and services, typically having a useful life longer than one year.

Long-Lived Assets

Physical assets, such as property, plant, and equipment, expected to provide economic benefits to a company for more than one fiscal year.