Which of the Following Is Not True of a Statement

question 77

Multiple Choice

Which of the following is not true of a Statement of Activities prepared for a private not-for-profit organization?

• A) Expenses are shown only as decreases in unrestricted net assets.
• B) Reclassifications for expiration of time restrictions are shown in the revenues and support section.
• C) Unrealized gains or losses on investments are shown only as increases in unrestricted net assets.
• D) Expenses are classified by function within the categories of Program Services and Supporting Services either in the Statement or the notes.

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Definitions:

Decentralization

The distribution of decision-making powers from central authority to individuals or units at lower levels within an organization or state.

Responsibility Accounting

The process of measuring and reporting operating data by areas of responsibility.

Responsibility Centers

Parts of an organization treated as separate entities for managerial accounting and performance measurement, each responsible for its own revenues, expenses, and investment funds.

Decentralized Business

A business model where decision-making and operational activities are distributed across different locations or departments, rather than centralized in a single location.