A nonprofit accountant is writing a comment explaining extenuating circumstances related to data reported in a statement of activities. The accountant is completing which type of financial statement?
A) addendum
B) required disclosures
C) notes to the financial statements
D) statement of functional expenses

Question

Quizplus · Accepted Answer

The statement of activities is one of the main financial statements for a nonprofit organization, which presents an overview of revenue and expenses for a given period. The notes to the financial statements provide additional information and details related to the data reported in the financial statements. In this case, the nonprofit accountant is explaining extenuating circumstances related to the data reported in the statement of activities, which is typically included in the notes to the financial statements. Therefore, the correct answer is C.

A Nonprofit Accountant Is Writing a Comment Explaining Extenuating Circumstances