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26 September, 13:59

A donor provides a large cash contribution that is to be used for acquisition of a new building. Under FASB standards, how would this contribution be reported by a not-for-profit organization on its statement of cash flows?

A. Operating activity.

B. Investing activity.

C. Financing activity.

D. Capital and related financing activity.

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  1. 26 September, 14:06
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    B. Investing activity.

    Explanation:

    Investing activity refers to payment for acquisition of assets like a new building. It is an investing activity because the asset is expected to generate returns in terms of savings in rent.
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