The Statement of Cash Flows for a Private Not-For-Profit Performing

question 12

Multiple Choice

The statement of cash flows for a private not-for-profit performing arts center should report cash flows according to which of the following classifications?

• A) Operating activities, investing activities and financing activities
• B) Operating activities, non-capital activities and capital activities.
• C) Investing activities, capital activities and financing activities.
• D) Financing activities, non-capital activities and capital activities.

---

Definitions:

Retained Earnings

The portion of a company's profits not distributed as dividends but retained for reinvestment in the business or to pay off debt.

Income Summary

An account used in the closing process during the accounting cycle that sums up all revenues and expenses for the period to determine the net income or loss for the period.

Retained Earnings

The sum of a company's earnings up to the present, reduced by any shareholder dividends or distributions.

Total Assets

The sum of all assets owned by a company, including both current and fixed assets, as represented on the balance sheet.