What does the Statement of Activities report?

The Statement of Activities provides a comprehensive overview of an organization’s financial performance over a specific period, typically including monthly and year-to-date activity. This report summarizes revenues and expenses, allowing stakeholders to assess how the organization has generated and used its resources over time.

By detailing financial activity across different time frames, the Statement of Activities helps in understanding not just performance relative to a budget, but also how certain spending and income patterns may shift or remain consistent throughout the year. This insight is critical for financial planning, decision-making, and ensuring accountability within the organization, making it an essential tool for both management and external stakeholders.

In contrast, focusing solely on expenses incurred would not provide a complete picture of financial health, nor would detailing only current assets and liabilities. While total contributions received is certainly an important metric, it does not encompass other significant income components and expenditures that are vital for overall financial analysis, which is why the broader view provided in the Statement of Activities is the correct and complete answer.