Question

Financial statements prepared by a voluntary health and welfare nongovernmental not-for-profit organization must report expenses by the following classification(s):Functional NaturalA. YES YES ï¼ B. Yes NoC. No Yes D. No No

Answer 1

Answer:

A. YES YES

Explanation:

In accordance with Financial Accounting Standards Board guidelines, all nonprofit organizations in the United States are now compelled to report their expenses in accordance with their functional classification and by the natural classification.

Hence, it is true that Financial statements prepared by voluntary health and welfare nongovernmental not-for-profit organization must report expenses both by both functional and natural class.