Which of the following is an objective of financial reporting for not-for-profit entities as established by FASB? Financial reporting should provide information that is useful to present and potential resource providers and other users in:
A)Assessing the types of services provided and the need for those services.
B)Assessing the services provided and the entity's ability to earn a profit.
C)Making rational decisions about the allocation of resources to those organizations.
D)Assessing how managers have managed personnel.

Question

Quizplus · Accepted Answer

Financial reporting for not-for-profit entities should provide information that is useful to present and potential resource providers and other users in making rational decisions about the allocation of resources to those organizations. The other options listed are not objectives of financial reporting for not-for-profit entities as established by FASB.

Which of the Following Is an Objective of Financial Reporting