Which type of organizations should present expenses on the face of financial statements?

Healthcare organizations should present expenses on the face of financial statements to provide transparency and clarity regarding their financial operations. This practice is crucial for these entities, as they serve a variety of stakeholders, including patients, insurance companies, and government entities. Displaying expenses on the face of financial statements allows for a straightforward view of operational costs, which can be essential for managing budgets, making informed financial decisions, and ensuring accountability.

In the context of healthcare organizations, showing expenses prominently can also highlight the costs associated with patient care and services provided, helping users of the financial statements assess the organization's efficiency and financial health. This level of detail is particularly important in the healthcare industry, where understanding the allocation of resources can influence funding decisions and regulatory compliance.

While not-for-profit and governmental organizations also present expenses in their financial reporting, the question specifically emphasizes which type should do so on the face of financial statements. In healthcare settings, there’s a strong emphasis on operational transparency due to the nature of services rendered, making it critical for these organizations to follow this practice.