Author Question: For most large businesses, the cash basis of accounting will provide accurate financial statements ... (Read 125 times)

lak · **on:** Jul 5, 2018

For most large businesses, the cash basis of accounting will provide accurate financial statements for user needs.
a. True
b. False

Indicate whether the statement is true or false

Question 2

A nongovernment, not-for-profit organization received a cash donation restricted for construction of a new building. How should the donation be reported be reported in the statement of cash flows?

a. Cash inflows from operating activities
b. Cash inflows from financing activities
c. Cash inflows from investing activities
d. None of the above. The cash inflow is not recognized until it becomes unrestricted by virtue of incurring construction costs.