Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 18, Problem 6Q
To determine
Explain the two general types of expenses in reporting the functional expenses of a not for profit entity.
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Explain Not-for-profit entities.
In reporting the functional expenses of a not-for-profit entity, what are the two general types of expenses?
The FASB requires that not-for-profits show the relationship of functional expenses to natural classifications of expense in what format?
Multiple Choice
A separate statement of functional expenses.
Any of these formats is acceptable.
As part of the statement of activities.
As a schedule in the notes to the financial statements.
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- Is there a difference between a balance sheet of a profit organization with a non-profit organization?arrow_forward1) Which of the following is not true? A) A not-for-profit entity operates for purposes other than to provide goods or services at a profit. B) A not-for-profit entity may be governmental or non-governmental. C) A not-for-profit entity may possess ownership interests like a corporation. D) A not-for-profit entity receives resources from resource providers who do not expect commensurate or proportionate pecuniary return.arrow_forwardDiscuss how characteristics of not-for-profit organizations differ from for-profit organizations.arrow_forward
- What is the major difference between a for-profit and a not-for-profit organization?arrow_forwardWhich of the following is needed for a fiduciary relationship to exist? Multiple Choice The assets are controlled by outside entities. The assets are derived from the reporting entity’s own revenues, which are used to benefit others. The assets are for the benefit of individuals and/or entities that are not part of the reporting entity. The assets are derived from a pass-through grant for which the reporting entity has administrative responsibility.arrow_forwardDifferentiate between public support and revenues as sources of assets for private not-for-profit organizations. Whatbenefit is there in accounting for these differently?arrow_forward
- What is the difference between For-profit organizations and Not-for-profit organizations?arrow_forwardWhat distinguishes for-profit and not-for-profit organisations?arrow_forwardQ: What are the 3 major financial statements required for all for-profit entities? Contrast those with the financial statements required for not-for-profit entities.arrow_forward
- Why does a government determine the net expenses or revenues for each of the functions within its statement of activities?arrow_forward1) What are the functions and Objectives of not-for profit organizations?arrow_forwardWhat are the financial reporting goals of not-for-profit organizations?arrow_forward
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