When Consolidated Financial Statements Are Prepared for a Not-For-Profit Organization

question 19

Multiple Choice

When consolidated financial statements are prepared for a not-for-profit organization using fund accounting,these statements should show ________.

• A)consolidated statements of operations and consolidated statement of financial position
• B)separate statements of operations and separate statements of financial position
• C)consolidated statement of operations and separate statements of financial position
• D)separate statements of operations and consolidated statement of financial position

---

Definitions:

Fixed Cost

Costs that do not change with the level of output produced by a firm.

Lawn-mowing

The action of cutting the grass in a yard or garden using a lawn mower, often considered a routine maintenance task or a service industry.

Variable Costs

Expenses that change in proportion to the activity of a business such as costs for raw materials or production labor.

Snow-clearing

The process of removing snow and ice from outdoor surfaces, primarily roads and pavements, to ensure safe passage for vehicles and pedestrians.