A nongovernmental not-for-profit organization borrowed $5,000, which it used to purchase a truck. In which section of the organization's statement of cash flows should the transaction be reported?
a.In cash inflow and cash outflow from investing activities.
b.In cash inflow from operating activities and cash outflow from investing activities.
c.In cash inflow and cash outflow from financing activities.
d.In cash inflow from financing activities and cash outflow from investing activities.
Answer：D
Choice "D" is correct. For a nongovernmental not-for-profit organization, the borrowing would be a cash inflow from financing activities, and the purchase of the truck would be a cash outflow from investing activities. For a nongovernmental not-for-profit organization, the commercial format for the statement of cash flows is followed.
Choice "a" is incorrect. The cash inflow for the borrowing is a financing activity, not an investing activity.
Choice "c" is incorrect. The cash outflow for the purchase of the truck is an investing activity, not a financing activity.
Choice "b" is incorrect. The cash inflow for the borrowing is a financing activity, not an operating activity.