The shows how every category of expense is allocated by a nonprofit.
A) statement of activities
B) statement of financial position
C) statement of cash flows
D) statement of functional expenses

Question

Quizplus · Accepted Answer

The statement of functional expenses shows how every category of expense is allocated by a nonprofit. It is a required statement for nonprofit organizations and provides transparency to donors and stakeholders regarding how the organization is utilizing its resources. The statement breaks down expenses by program, administration, and fundraising categories.

The Shows How Every Category of Expense Is Allocated by a Nonprofit