Nongovernment, Not-For-Profit Organizations Use the Following Classifications to Report Expenses

question 30

Multiple Choice

Nongovernment, not-for-profit organizations use the following classifications to report expenses in the statement of activities

• A) Changes in net assets without donor restrictions and changes in net assets with donor restrictions.
• B) Operating and nonoperating.
• C) Management and general and supporting services.
• D) Mission critical, non-mission-critical, and discretionary.

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Definitions:

Economy

The system by which goods and services are produced, distributed, and consumed in a society.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, removing the effects of inflation to compare one period with another.

Real GDP

Inflation-adjusted GDP, which presents a truer picture of an economy's magnitude and growth patterns over time.

Intermediate Products

Goods used as inputs in the production of other goods, including raw materials, components, and subassemblies.