[wjxhahaha]

According to Investopedia, any various online sources: CFI is cash flow that arises from investment activities such as the acquisition or disposition of current and fixed assets.

However when I was dealing with governmental and not for profit, a lot of questions have indicated that purchase of asset is actually financing activities….is this a difference that we should keep in mind b/t commercial and non-commercial?

Can anyone explain to me the reasoning for classifying purchasing of asset as financing?

Any help would be greatly appreciated!!! Thanks a lot!!!

[monikernc]

this article provides a good summary

https://smallbusiness.chron.com/difference-between-fasb-gasb-effects-statement-cash-flows-76401.html

The FAR study group is a better place to first post your questions.

FAR 7/25/15 76!
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Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
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[wjxhahaha]

@monikernc
Thanks a lot ! I will try the study group next time!

[Author]

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