Which of the following is an objective of financial reporting by nongovernmental not-for-profit entities as established by the FASB?
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

Which of the following is an objective of financial reporting by nongovernmental not-for-profit entities as established by the FASB? 
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.

Quizplus · Accepted Answer

The objective of financial reporting by nongovernmental not-for-profit entities, as established by the Financial Accounting Standards Board (FASB), includes enabling users to make rational decisions about the allocation of resources to those organizations. This helps donors, grantors, and other stakeholders understand how their resources are being used to support the entity's mission and activities.

Which of the Following Is an Objective of Financial Reporting