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

question 33

Multiple Choice

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

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

---

Definitions:

Successfully Meeting Goal

Achieving a set objective or reaching a target as planned or desired, often through effort and determination.

Cultural Formula

A set of culturally agreed-upon expectations that shape understanding and behavior in specific situations.

Functional Value

The practical or utilitarian benefit that a product or service provides to the consumer.

Craft Product

A product that is made by hand or with limited automation, often emphasizing quality, uniqueness, and artisanal skill.