Question

The statement of financial position a. Allows readers to assess the nonprofit’s ability to meet financial...

The statement of financial position

a. Allows readers to assess the nonprofit’s ability to meet financial obligations

b. Summarizes the financial transactions

c. Enables stakeholders to assess the nonprofit’s current financial condition

d. Classifies expenses by function

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Answer #1

Statement of financial position is like balance sheet for the nonprofit entities and it will be reflecting the ability of non-profit entities current financial status and it will enable stakeholder to access the non-profits current financial condition in order to deal with business

Statement of financial position will be reflecting the financial position of not for profit organisation at a given moment of time so it will be reflecting the current financial condition.

other options are not true because it is not summarising the financial transaction or allowing readers to access the non for profit ability to meet financial obligations.

Correct answer will be option (C) enable stakeholders to access the not-for-profit current financial condition.

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