Final answer:
True, Under FASB standards, the statement of activities for a not-for-profit organization is required to be separated into operating and nonoperating activities.
Step-by-step explanation:
Under FASB (Financial Accounting Standards Board) standards, specifically under Accounting Standards Codification (ASC) 958, "Not-for-Profit Entities," the statement of activities for a not-for-profit organization is indeed required to be separated into operating and nonoperating activities. This separation provides users of financial statements with information about the sources of an organization's revenues and the activities that use its resources.
The operating activities generally include transactions and events that enter into the determination of the organization's operating income. Nonoperating activities, on the other hand, are those that are not directly related to the core mission or ongoing operations of the organization. This separation helps stakeholders, such as donors and other users of financial statements, to understand how the organization's resources are utilized in its mission-related activities and in other activities that may not be central to its primary purpose.