Question

A not-for-profit voluntary health and welfare organization should report a contribution for the construction of a new building as cashflow for which of the following in the statement of cash flows?

a. capital financing activities
b. operating activities
c. financing activities
d. investing activities

Answer 1

The correct answer is letter "C": financing activities.

Step-by-step explanation:

Cash flow refers to transferring cash to, or from, an account, a company, or an investment. In the cash flow statement, there is a section called "Financing Activities" where all the net flow of cash to fund the entity is recorded. Those activities imply the firm's equity, debt, and dividends.