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Problem 1: Which of the following statements regarding not-for-profit financial statements is true?
a) The terms used to describe the financial statements of a not-for-profit organization (NPO) are the same as the terms used in profit-oriented financial statements.
b) The statement of cash flows for an NPO is similar to the statement of financial position for a profit-oriented company.
c) The statement of financial position for an NPO is similar to the income statement for a profit-oriented company.
d) The statement of changes in net assets or fund balances for an NPO is similar to the statement of retained earnings for a profit-oriented company.
Financial Statement Analysis and Preparation
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