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The basic financial statements of a not-for-profit include all of the following except _____. A. Statement of financial position. B. Statement of activities. C. Statement of changes in functional expenses. D. Statement of cash flows

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The correct answer is D. Statement of cash flows.

The basic financial statements of a not-for-profit organization include the following:

A. Statement of financial position (also known as the balance sheet) provides information about the organization's assets, liabilities, and net assets at a specific point in time.

B. Statement of activities (also known as the income statement or statement of revenue and expenses) presents the organization's revenues, expenses, gains, and losses over a specific period, typically a fiscal year.

C. Statement of changes in functional expenses (also known as the statement of functional expenses) provides details about the organization's expenses by functional categories, such as program services, management and general, and fundraising.

D. Statement of cash flows is not typically included as a basic financial statement for not-for-profit organizations. While the statement of cash flows is an important financial statement for for-profit entities, not-for-profit organizations typically focus more on tracking and reporting changes in their net assets rather than cash flows.

Therefore, the correct answer is D. Statement of cash flows.
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