Question

The following statements relate to nongovernmental NFPs. Match the followings with each others.

a. Reported by functional classification.
b. The activities that result in goods and services being distributed to beneficiaries that fulfill the purposes of the entity.
c. A nongovernmental NFP's external reporting must be based on this guidance.
d. An acceptable method for internal purposes in a nongovernmental NFP. But not required for external reporting.
e. A purpose of external financial reporting by an NFP.
f. Recognized for amounts received in agency transactions.
g. Items ordinarily reported on the statement of activities as net amounts.

1. Expenses
2. Supporting activities
3. US GAAP
4. GASB standards
5. Revenues
6. Fund accounting
7. Assets
8. Helps to assess stewardship
9. Services
10. Liabilities
11. Investment returns

Answer 1

a. Reported by functional classification

Correct Match: Expenses

b. The activities that result in goods and services being distributed to beneficiaries that fulfill the purposes of the entity

Correct Match: Supporting activities

c. A nongovernmental NFP's external reporting must be based on this guidance

Correct Match: GASB standards

d. An acceptable method for internal purposes in a nongovernmental NFP. But not required for external reporting

Correct Match: US GAAP

e. A purpose of external financial reporting by an NFP

Correct Match: Fund accounting

f. Recognized for amounts received in agency transactions

Correct Match: Revenues

g. Items ordinarily reported on the statement of activities as net amounts

Correct Match: Revenues