Not-for-profits are required to report expense amounts by natural classification and functional classification

True or False

The FASB states that donated services should be recorded as contributions by a not-for-profit organization if they meet the recognition criteria and are material.

True or False

Goodwill created because a not-for-profit organization obtains control of another organization is always recorded as an asset.

True or False

Donor-imposed restrictions must be clearly reflected in financial statements of not-for-profit organizations reporting under the FASB.

True or False

1. A not-for-profit organization incurred $10,000 in management and general expenses in the current fiscal year. When reporting the expenses by function, the $10,000 would be reported as:

Multiple Choice

A deduction from program revenue.

Fund-raising expense.

Program services expenses.

Supporting services expenses.

2. Not-for-profits can report expenses by nature and function:

Multiple Choice

In the notes to the financial statements.

As a separate financial statement.

In the statement of activities.

All of the options are correct.