CPA Exam LabFAR
Section 1: 30–40%1B3

Statement of Cash Flows (NFP)

NFP cash flow statements are structurally similar to for-profit statements but with important differences in classification. Key exam areas: where donor-restricted cash goes, how endowment receipts are classified, and the treatment of interest/dividends.

What AICPA Wants You to Know

  • 1Apply the three-section structure (operating, investing, financing) to NFP cash flows
  • 2Classify contributions with donor restrictions correctly in the cash flow statement
  • 3Determine where endowment receipts and investment returns appear
  • 4Explain NFP-specific cash flow classification rules under ASC 958