1. Financial statements prepared by a voluntary health and welfare nongovernmental not-for-profit organization must report expenses by the following classification(s):

Functional Natural

A. YES YES answer

B. Yes No

C. No Yes

D. No No

please explain this!

2. The city of Cobb has two trust funds for the benefit of the city's library, trust fund A and trust fund B. Only the earnings from trust fund A can be expended and both the principal and interest from trust fund B can be expended. How should the city of Cobb report each trust fund? Trust fund A Trust fund B

A. Permanent Permanent

B. Permanent Special revenue

C. Special revenue Permanent

D. Special revenue Special revenue

please explain and why!