HFMA Certified Specialist Accounting and Finance (CSAF) Practice Test

Not-for-profit organizations are required to report their total income or loss from operations on a statement of revenues and expenses to provide transparency about their financial performance. This format helps stakeholders, including donors and grantors, understand how effectively the organization utilizes its resources. The statement allows for a clear view of the organization's revenues, expenses, and resulting surplus or deficit, contributing to informed decision-making for funding and support.

While governmental organizations and healthcare organizations may also have specific reporting requirements, the focus of the question is specifically on the statement of revenues and expenses, which is most commonly associated with the financial practices of not-for-profit organizations. Private corporations typically follow different accounting standards, primarily geared towards profit maximization, rather than the mission-driven model of not-for-profits.