The reader of the financial statements of a not-for-profit organization needs to be able to Review section if:
A)They have made a profit for the period.
B)The return on investments is positive.
C)Its mission has been fulfilled in the most cost efficient way.
D)All of the above.

Question

Quizplus · Accepted Answer

The reader of the financial statements of a not-for-profit organization needs to review the section if its mission has been fulfilled in the most cost-efficient way. This is because the primary goal of a not-for-profit organization is to fulfill its mission, and the financial statements will provide information on how efficiently the organization is using its resources to achieve its mission. The other options, making a profit and having a positive return on investments, may not necessarily be applicable to not-for-profit organizations as they do not focus on generating profits or returns for shareholders.

The Reader of the Financial Statements of a Not-For-Profit Organization