Not-for-profits are required to report expense amounts by natural classification and functional classification True or...
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Accounting
Not-for-profits are required to report expense amounts by natural classification and functional classification
True or False
The FASB states that donated services should be recorded as contributions by a not-for-profit organization if they meet the recognition criteria and are material.
True or False
Goodwill created because a not-for-profit organization obtains control of another organization is always recorded as an asset.
True or False
Donor-imposed restrictions must be clearly reflected in financial statements of not-for-profit organizations reporting under the FASB.
True or False
1. A not-for-profit organization incurred $10,000 in management and general expenses in the current fiscal year. When reporting the expenses by function, the $10,000 would be reported as:
Multiple Choice
A deduction from program revenue.
Fund-raising expense.
Program services expenses.
Supporting services expenses.
2. Not-for-profits can report expenses by nature and function:
Multiple Choice
In the notes to the financial statements.
As a separate financial statement.
In the statement of activities.
All of the options are correct.
Answer & Explanation
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