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

question 48

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, one must be recognized on the face of the financial statements and one is reported in the notes to the financial statements.

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Definitions:

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Cultural Feminism

A branch of feminism focused on emphasizing and celebrating differences between men and women, advocating for the value of what are traditionally considered feminine traits.

Unpaid Work

Labor, such as household chores or caregiving, which is not compensated with money but contributes to the well-being and functioning of a family or society.

Separatism

The advocacy for the separation of a certain group of people from a larger body on the basis of ethnicity, religion, or gender.