The Fund Structure and Terminology Differ Among NNOS, but There

question 2

Essay

The fund structure and terminology differ among NNOS, but there are six funds commonly used. Identify the funds used by nongovernment nonbusiness organizations.

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Definitions:

Cost of Merchandise Sold

The direct costs tied to producing the goods that a company sells, thus a direct reflection of the cost of inventory sold.

Gross Profit

The difference between revenue and the cost of goods sold, excluding other operating expenses and taxes.

Income from Operations

The profit earned from a company's everyday business activities, excluding income from other sources and expenses like taxes and interest.

Operating Expenses

The costs associated with the day-to-day activities of running a business, not including the cost of goods sold.