Section 1: 30–40%1B2
Statement of Activities (NFP)
Exam insight
NFP statements look nothing like for-profit ones - no retained earnings, no income statement. The AICPA tests which statements are required (financial position, activities, and cash flows) and what goes where. The trap: candidates forget that NFPs must show functional expense information, either on the face of the statements or in the notes.
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What AICPA wants you to know
- 1Describe the overall structure of the NFP statement of activities
- 2Classify revenues as with or without donor restrictions and explain how restrictions are released
- 3Distinguish between program services and supporting activities in expense presentation
- 4Apply the three required disclosures about liquidity and availability of resources
- 5Explain how investment returns are reported on the statement of activities