FASB requires that all not-for-profit organizations report expenses
A)By object.
B)By function.
C)By natural classification.
D)By budget code.

Question

Quizplus · Accepted Answer

FASB requires that all not-for-profit organizations report expenses by function, meaning that expenses are grouped and reported according to the purpose for which they were incurred (e.g. program services, management and general, fundraising). This allows donors, regulators, and other stakeholders to better understand how the organization is using its resources and fulfilling its mission.

FASB Requires That All Not-For-Profit Organizations Report Expenses