Question

The net asset reclassifications of a nongovernmental not-for-profit organization would be reported on which of the following?

a. Statement of financial position.
b. Statement of functional expenses.
c. Statement of cash flows.
d. Statement of activities.

Answer 1

Answer: Option (D) is correct

The statement of activities is referred to as the main financial statements of a nongovernmental not-for-profit organization. A nonprofit organization's statement of activities is issued rather than the statement of income which is provided by an organization which looks to maximize profit. This concentrates on the total organization.