The Purpose of a Statement of Functional Expenses Is to

question 21

Multiple Choice

The purpose of a statement of functional expenses is to

• A) Report on the net income of each program compared to that of supporting the programs.
• B) Report on program expenses and supporting expenses.
• C) Report on the natural expenses (object-of-expense),as well as program and support functions expenses.
• D) Report on the cash flows of each program and that of supporting the programs.

---

Definitions:

Investment Analysis

The process of evaluating an investment for profitability and risk, thereby enabling the investor to make informed decisions.

Present Value Analysis

A method of valuing a future cash flow to determine its worth at the present time, taking into account the time value of money.

Capital Investment

Money expended by a business to purchase or improve tangible assets like land, factories, or machinery.

Investment Funds

These are pooled funds from various investors used to acquire securities and other investment assets, managed by financial professionals.