On a Statement of Functional Expenses for a Voluntary Health

question 22

Multiple Choice

On a statement of functional expenses for a voluntary health and welfare entity, how are expenses classified?

• A) Health services expenses and operating expenses.
• B) Program services expenses and administrative services expenses.
• C) Program services expenses and supporting services expenses.
• D) Operating expenses and supporting services expenses.
• E) Operating expenses and administrative expenses.

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Definitions:

Form 941

A federal tax form used by employers to report quarterly federal income tax withheld from employees' wages and payroll taxes.

Form 940

A tax form filed by employers to report annual Federal Unemployment Taxes (FUTA).

Income Summary

An account used in the closing process to collect the balance of all temporary accounts and transfer the result to permanent equity accounts.

Expense Accounts

Ledger accounts that record the costs incurred by a business in its operational activities, excluding the cost of goods sold.