Which of the following reporting objectives for not-for-profit organizations allows the users to determine whether restricted funds were spent in accordance with the intended purpose?
A)Stewardship.
B)Cash flow prediction.
C)Performance evaluation.
D)Measuring the cost of services rendered.

Question

Quizplus · Accepted Answer

The reporting objective of stewardship allows users to determine whether restricted funds were spent in accordance with the intended purpose. Stewardship refers to the responsibility of managing and using resources in a way that is consistent with the organization's mission and goals. Therefore, stewardship reporting should include information on how restricted funds were utilized, and whether any restrictions were violated. The other reporting objectives listed do not specifically address the use of restricted funds.

Which of the Following Reporting Objectives for Not-For-Profit Organizations Allows