Which of the Following Is Not Correct with Respect to the Reporting

question 91

Multiple Choice

Which of the following is not correct with respect to the reporting of expenses for a private not-for-profit?

• A) Expenses can be reported in the unrestricted net asset class or restricted net asset class, as appropriate.
• B) Expenses are reported by function in the Statement of Activities or in the notes.
• C) The FASB describes functions as either program or supporting.
• D) Major program classifications should be shown in the Statement of Activities or in the notes.

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Definitions:

Restraints Of Trade

Legal limitations placed on business practices and agreements that might unfairly limit competition or control prices.

Free Competition

An economic situation in which businesses operate without undue restrictions, allowing for the natural forces of supply and demand to determine prices and output.

Age Of Majority

The age at which an individual is considered legally capable of conducting himself or herself responsibly and is entitled to vote. In contract law, the age at which one is no longer an infant and can no longer disaffirm a contract.

Legally Binding

an agreement or contract that is enforceable by law, obligating parties to fulfill their contractual duties.