Question

Determine whether each of the following is true or false. Assume that each organization is a private, not-for-profit entity. It is possible that an item need not be reported on the hospital's statement of operations.

A statement of functional expenses is required for a musical arts association.

Answer 1

A nonprofit health organization may not be required to report certain items on their statement of operations. Private hospitals are typically required to report all relevant items. Governmental agencies like Health and Social Services have strict reporting requirements.

Step-by-step explanation:

To determine whether the statements are true or false, we need to understand the requirements for reporting in different types of organizations. According to the information provided, let's analyze each statement:

1. A nonprofit health organization: It is possible that an item need not be reported on the organization's statement of operations. True. Nonprofit health organizations may have specific exemptions or regulations that determine whether certain items need to be reported on the statement of operations.
2. A private hospital: It is possible that an item need not be reported on the hospital's statement of operations. False. Private hospitals are typically required to report all relevant items on their statement of operations.
3. A governmental agency like Health and Social Services: It is possible that an item need not be reported on the agency's statement of operations. False. Governmental agencies like Health and Social Services usually have strict reporting requirements and are required to report all relevant items on their statement of operations.