Which of the Following Isnot True Regarding the Statement

question 47

Multiple Choice

Which of the following isnot 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 restricted cash contribution for long-term purposes, that cash contribution would be reported as a cash flow from financing activities.
• C) Restricted contributions used for long-term purposes are reported as financing activities.
• D) Four categories of cash flows are used.

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Definitions:

Income Statement

A financial statement that shows a company's revenue and expenses over a particular period, illustrating how net income or net loss was achieved.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or proprietors.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Revenues

The total income generated from normal business operations and other activities over a period.