Which of the Following Is True Regarding the Statement of Activities

question 18

Multiple Choice

Which of the following is true regarding the Statement of Activities for nongovernmental,not-for-profit organizations?

• A) FASB requires that the change in net assets be reported for each of the net asset classes and in total.
• B) Expenses are reported as unrestricted, temporarily restricted or permanently restricted.
• C) Both A & B above.
• D) Neither A nor B above. .

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Balance Sheet

A descriptor of a company’s financial health, enumerating assets, liabilities, and the stake of shareholders at an exact moment.

Direct Labor

Direct Labor refers to the wages and salaries paid to employees who are directly involved in the production of goods or services.

Product Costs

Costs that are directly associated with the manufacture of goods, including material, labor, and overhead costs.