Question

Which one of the following is least likely to be an objective of NFP reporting?

	A.	Information should be useful in assessing whether the organization is in compliance with relevant laws.
	B.	Information should useful in evaluating services provided.
	C.	Information should be useful in assessing management performance.
	D.	Information should be useful for making resource allocation decisions.

Answer 1

Answer:A.Information should be useful in assessing whether the organization is in compliance with relevant laws.

As there is minimum laws pertinent on the NFPs and the major aims of the NFPS are as follows:

1. Arrange for the resources apportionments results whether the resources are allocated in efficient manner or not.
2. To evaluate the services provided and whether how long it can be provided by the organisation i.e ability to provide that particular services.
3. To examine how much economic resources are available, what are the duties of the organisation and what are the resources available after that duties.
4. To evaluate the presentation of the management regarding consumption of resources means whether management is competent or not to utilisation of resources.