When consolidated financial statements are prepared for a not-for-profit organization using fund accounting, these statements should show ________.
A)separate statements of operations and consolidated statement of financial position.
B)consolidated statements of operations and consolidated statement of financial position.
C)separate statements of operations and separate statements of financial position.
D)consolidated statement of operations and separate statements of financial position.

Question

Quizplus · Accepted Answer

When consolidating financial statements for a not-for-profit organization using fund accounting, it's appropriate to present consolidated statements for both operations and financial position. This allows for a comprehensive picture of the organization's financial performance and position to be presented to stakeholders. Separate statements may be appropriate for specific funds or programs, but the consolidated statements should be the primary presentation of financial information.

When Consolidated Financial Statements Are Prepared for a Not-For-Profit Organization