Your Ask Joey ™ Answer

What is included in the statement of activities?

The statement of activities is issued by a not-for-profit organization and is similar to an income statement (issued by for-profit organizations). Th statement of activities will include the following:

1) Changes in net assets – Similar to net income in the sense that it’s the summation of revenue and expenses. If revenue exceeds expenses, then net assets will increase. If expenses exceed revenue, then net assets will decrease

2) Revenues – An NFP can have a variety of revenue streams, which is basically how the NFP receives cash. Cash can come from donations/contributions, grants, memberships, etc.

3) Expenses – Represents any cash outflow the NFP incurs to run the organization.


Back To All Questions

You might also be interested in...