Financial statement users often make judgments about nonprofit organizations based on the percentage of total expenses that have been spent in a year on program services Explain One reason that supports using this ratio as a way of evaluating nonprofit organizations Why is this a good thing to do One reason that using this ratio may not be a good way of evaluating nonprofit organizations Why might this be a bad thing to do

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Question: Financial statement users often make judgments about nonprofit organizations based on the percentage of total expenses that have been spent in a year on program

Financial statement users often make judgments about nonprofit organizations based on the percentage of total expenses that have been spent in a year on program services. Explain:

One reason that supports using this ratio as a way of evaluating nonprofit organizations. Why is this a good thing to do?
One reason that using this ratio may not be a good way of evaluating nonprofit organizations. Why might this be a bad thing to do?

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