The following statements relate to nongovernmental NFPs. Select from the option list provided the most appropriate description of each statement. Each choice may be used once, more than once, or not at all.

  

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Statement 1. Reported by functional classification. 2. The activities that result in goods and services being distributed to beneficiaries that fulfill the purposes of the entity. 3. A nongovernmental NFP's external reporting must be based on this guidance. 4. An acceptable method for internal purposes in a nongovernmental NFP. But not required for external reporting. 5. A purpose of external financial reporting by an NFP. 6. Recognized for amounts received in agency transactions. 7. Items ordinarily reported on the statement of activities as net amounts. Description !!! Statement 1. Reported by functional classification. 2. The activities that result in goods and services being distributed to beneficiaries that fulfill the purposes of the entity. 3. A nongovernmental NFP's external reporting must be based on this guidance. 4. An acceptable method for internal purposes in a nongovernmental NFP. But not required for external reporting. 5. A purpose of external financial reporting by an NFP. 6. Recognized for amounts received in agency transactions. 7. Items ordinarily reported on the statement of activities as net amounts. Description !!!

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NFPS 1 Reported by functional classification 2 The activities ... View the full answer