A not-for-profit organization incurred $10,000 in management and general expenses in the current fiscal year. In the organization's statement of activities prepared in conformity with FASB standards, the $10,000 would be reported as:

Question

Quizplus · Accepted Answer

According to FASB standards, management and general expenses are classified as supporting services expenses, which include costs associated with administration, finance, and other activities that support the primary mission of the organization. Therefore, the $10,000 should be reported as supporting services expenses in the organization's statement of activities.

A Not-For-Profit Organization Incurred $10,000 in Management and General Expenses