Section 1: 30–40%1B3
Statement of Cash Flows (NFP)
Exam insight
Contributions are the heart of NFP accounting - and the hardest part. The AICPA's favorite trap: a donor gives cash 'for the new building.' With donor restriction or without? It hinges on whether the restriction is purpose-based or time-based. And board-designated funds look restricted but are legally unrestricted. Miss these distinctions and you'll misclassify net assets on every question.
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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