On a statement of functional expenses for a voluntary health and welfare entity, how are expenses classified?
A) Health services expenses and operating expenses.
B) Program services expenses and administrative services expenses.
C) Program services expenses and supporting services expenses.
D) Operating expenses and supporting services expenses.
E) Operating expenses and administrative expenses.

Question

Quizplus · Accepted Answer

Expenses for a voluntary health and welfare entity are classified as program services expenses and supporting services expenses on a statement of functional expenses. Program services are the primary activities for which the organization is established, while supporting services include management, general, and fundraising expenses.

On a Statement of Functional Expenses for a Voluntary Health