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

Question

Quizplus · Accepted Answer

Not-for-profits can report expenses by nature and function in the notes to the financial statements, as a separate financial statement, or in the statement of activities. All of these options are correct and can provide useful information to stakeholders. Reporting expenses by nature and function can help donors, grantors, and other stakeholders understand how the organization's resources are being allocated and used to achieve its mission.

Not-For-Profits Can Report Expenses by Nature and Function