Asked by Ericka Pearce on May 28, 2024
Verified
Which type of financial statement shows how every category of expense was allocated?
A) activities
B) cash flows
C) financial position
D) functional expenses
Functional Expenses
In non-profit accounting, these are the expenses directly related to the organization's programmatic, fundraising, and administrative activities.
Expense Allocated
The method by which costs are assigned to different departments, projects, or activities within an organization.
- Inspect financial wellness by analyzing liquidity, profitability, the administration of assets, and the capability for long-term solvency.
Verified Answer
BZ
Benny ZhuangMay 29, 2024
Final Answer :
D
Explanation :
Functional expenses statement shows how every category of expense was allocated in regards to the different functions of an organization such as program services, fundraising, and management and general expenses. Activities statement shows how resources were used to carry out specific activities, cash flows statement shows the inflows and outflows of cash during a period, and financial position statement shows the organization's assets, liabilities, and equity at a specific point in time.
Learning Objectives
- Inspect financial wellness by analyzing liquidity, profitability, the administration of assets, and the capability for long-term solvency.
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