On a Statement of Activities for a Not-For-Profit Entity, What

question 54

Multiple Choice

On a Statement of Activities for a not-for-profit entity, what is the minimum required classification for categories of expenses?

• A) Fund-raising 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:

Economic Swings

Refers to the fluctuations in economic activity over time, including periods of economic expansion and contraction.

Supply Shortages

A situation where the demand for a product or service exceeds the available supply, often leading to increased prices and scarcity.

Price Increases

A rise in the cost of goods or services, often due to factors like inflation, increased production costs, or higher demand.

Local Nuances

Pertains to the subtle and specific features or variations within a local context or culture, often crucial for understanding and operating effectively within that locale.