On a Statement of Activities for a not-for-profit entity, what is the minimum required classification for categories of expenses?
A) Fund-raising expenses and operating expenses.
B) Program services expenses and administrative services expenses.
C) Program services expenses and supporting services expenses.
D) Operating expenses and supporting services expenses.
E) Operating expenses and administrative expenses.

Question

Quizplus · Accepted Answer

The minimum required classification for categories of expenses on a Statement of Activities for a not-for-profit entity is program services expenses and supporting services expenses. This classification helps in distinguishing between expenses directly related to the mission of the organization (program services) and those that support the organization as a whole (supporting services).

On a Statement of Activities for a Not-For-Profit Entity, What