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A generous cash donation from a donor is made in order to purchase a new building. According to FASB guidelines, a non-profit organization must disclose this gift on its statement of cash flows from financial activities.
What three sorts of cash flow statements are there?
Organizations should track and examine three main types of cash flow: cash flow from operating activities, cash flow from investment activities, and cash flow from financing activities. These three categories of cash flow can all be used to measure a company's liquidity and solvency. All three are shown in a corporation's cash flow statement.
A cash flow statement from financing activities is what?
The cash flows used to finance a company's operations are shown in a section of the cash flow statement known as cash flow from financing activities (CFF). Financing activities are defined as transactions involving debt, equity, and dividends.
The financing activity in the cash flow statement is concerned with how a company obtains capital and returns it to investors via capital markets. Additionally, these actions consist of making cash dividend payments, adding or modifying debts, and issuing and reselling additional stock.
Learn more about financing activity in the cash flow statement: https://brainly.com/question/22237116
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