Understanding Nonprofit Law and Finance by Erik Estrada
Author:Erik Estrada
Language: eng
Format: epub
ISBN: 9781538126936
Publisher: Rowman & Littlefield Publishers
Published: 2019-06-20T00:00:00+00:00
Key Principles
→ The statement of cash flows for any nonprofit is broken down into three different sections: (1) cash flows from operating activities; (2) cash flows from investing activities; and (3) cash flows from financing activities.
→ The statement of cash flows is over the same period of time as the income statement, and it shows how a nonprofit both generated cash and used cash during this period.
→ Since most nonprofits utilize accrual-basis accounting, which is required by GAAP, the statement of cash flows utilizes cash-basis accounting to record transactions under the nonprofit’s operating, investing, and financing activities.
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