Which of the Following Is Not True of a Statement

question 114

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 losses) on investments are shown only as increases decreases) 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:

Security

A financial asset signifying either an equity stake in a corporation that's publicly traded (known as stock), a debt investment in a company or government (referred to as a bond), or entitlements to ownership through an option.

Put Option

This is a financial deal that permits the carrier to optionally sell a specified volume of an underlying asset at a designated price within an agreed timeframe, without mandatory action.

Seller

An individual or entity that offers goods or services in exchange for payment or other compensation.

Specified Price

A pre-determined price point related to financial and contractual agreements.