Question

In addition to a Statement of Financial Position and a Statement of Activities, a private college or university is required to present:

A) A Statement of Functional Expense.
B) A Statement of Cash Flows.
C) Both (a) and (b).
D) Neither (a) nor (b).

Answer 1

A private college or university is required to present both a Statement of Functional Expense and a Statement of Cash Flows, in addition to a Statement of Financial Position and a Statement of Activities.

Step-by-step explanation:

A private college or university is required to present both a Statement of Functional Expense and a Statement of Cash Flows, in addition to a Statement of Financial Position and a Statement of Activities.

The Statement of Functional Expense provides information about how the college or university allocated its expenses across various functions, such as instruction, research, and student services.

The Statement of Cash Flows shows the cash inflows and outflows during a specific period and helps users understand the college or university's operating, investing, and financing activities.