Which of the Following Is not True Regarding the Statement

question 125

Multiple Choice

Which of the following is not true regarding the Statement of Activities for nongovernmental, not-for-profit organizations?

• A) FASB requires that the change in net assets be reported for each of the net asset classes.
• B) Expenses are reported as unrestricted, temporarily restricted or permanently restricted.
• C) Expenses are reported as decreases in unrestricted net assets.
• D) Organization-wide totals must be provided.

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Definitions:

Profit

The financial gain realized when the amount of revenue gained exceeds the expenses, costs, and taxes involved in sustaining the activity in question.

Long Run Equilibrium

A state in an economy in which all factors of production and inputs can be varied, allowing firms to make adjustments and leading to the normalization of prices and output.

Industry's Adjustment

The process by which industries adapt to changes in economic conditions, technology, or market demands.

Average Total Cost

The total cost of production divided by the number of units produced, representing the average cost per unit.