ExpertHard1 markMultiple Choice
CPA · Question 43 · Area 3: Select Transactions
Which of the following expenses would be classified as 'Supporting Services' in a NFP Statement of Functional Expenses?
Which of the following expenses would be classified as 'Supporting Services' in a NFP Statement of Functional Expenses?
Answer options:
A.
Salaries of researchers.
B.
Cost of educational pamphlets distributed to the public.
C.
Rental of space for the community clinic.
D.
Cost of printing fundraising solicitation letters.
How to approach this question
Classify expenses into Program (Mission-related) vs Supporting (Admin/Fundraising).
Full Answer
D.Cost of printing fundraising solicitation letters.✓ Correct
D
Expenses are classified as Program Services (mission-related) or Supporting Services. Supporting Services include Management and General (Admin) and Fundraising. Solicitation letters are Fundraising.
Common mistakes
Classifying fundraising as a program expense.
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