How Does the FASB Require Not-For-Profit Organizations to Report Expenses

question 1

Multiple Choice

How does the FASB require not-for-profit organizations to report expenses?

• A) Natural classification, such as salaries, rent, and supplies.
• B) Functional classification, such as program and support.
• C) Management has the option of reporting using natural classification or functional classification.
• D) Both natural classification and functional classification must be reported.