What are the two classifications for expenses and what are some examples? When is it appropriate for private-sector not-for-profit health care entities to disclose functional expenses in the notes?
Expenses maybe classified in their normal classifications such as by salaraies and supplies. They can also be classifed by function such as professional care of patients and general services. The private sector not for profit must disclose expenses by function in the notes if not put into the Statement of Operations.
Expenses can either be reported by their natural classification or their functional classifiction. Examples of natural classification expenses include salaries and supplies. Function classification includes professional care and general services.
Expenses maybe classified in their normal classifications such as by salaraies and supplies. They can also be classifed by function such as professional care of patients and general services. The private sector not for profit must disclose expenses by function in the notes if not put into the Statement of Operations.
ReplyDeleteExpenses can either be reported by their natural classification or their functional classifiction. Examples of natural classification expenses include salaries and supplies. Function classification includes professional care and general services.
ReplyDelete