What is the Accounting equation for Non-profit accounting? - answer-Assets = Liabilities + Net Assets
All of the below are Current Assets EXCEPT:
a. Supplies
b. Market Securities
c. Cash
d. Land - answer-d. Land
All of the following are Red Flags regarding financial statements EXCEPT:
a....
Nonprofit Accounting Exam #2 Review
What is the Accounting equation for Non-profit accounting? - answer-Assets
= Liabilities + Net Assets
All of the below are Current Assets EXCEPT:
a. Supplies
b. Market Securities
c. Cash
d. Land - answer-d. Land
All of the following are Red Flags regarding financial statements EXCEPT:
a. Large reductions in administrative expenses
b. Losses in fixed assets
c. Annual Surplus remaining constant
d. Nonprofits receiving large contributions - answer-c. Annual Surplus
remaining constant
Why is land not depreciated?
a. It is obsolete & cannot be destroyed
b. Its does not expire
c. It can be depreciated
d. The value of land remains constant over time - answer-a. It is obsolete &
cannot be destroyed
What is the difference between public goods and private goods?
a. Public goods are rival and excludable and private goods are not.
b. Private goods are rival and excludable and public goods are not.
c. Public goods are used by all members of society and private goods are
not.
d. Private goods are used by all members of society and public goods are
not. - answer-b. Private goods are rival and excludable and public goods are
not.
What are trade benefits?
a. Benefits accrued to clients & consumers of nonprofit services
b. Benefits accrued to specific constituencies associated with causes that
potential donors may value
c. Benefits that are accrued to organizational partners ina quid pro quo
relationship
d. Benefits that are accrued to the general public - answer-c. Benefits that
are accrued to organizational partners in a quid pro quo relationship
, You put $5,000 into your bank account with a yearly interest rate of 8%. At
the end of 5 years, what is your future value of the money that you put into
the account?
a. $5,400.00
b. $7,000.00
c. $7346.64
d. $3295.41 - answer-c. $7346.64
Why should a nonprofit diversify its revenue? - answer-A diversified portfolio
encourages more stable revenue sources and consequently could promote a
greater organizational longevity
What are the three liquidity ratios?
a. Debt-to Asset Ratio, Quick ratio, Working Capital
b. Quick Ratio, Days Receivable Ratio, Return on Assets Ratio
c. Current Ratio, Quick Ratio, Debt-to-Equity Ratio
d. Current Ratio, Working Capital, Quick Ratio - answer-d. Current Ratio,
Working Capital, Quick Ratio
What are 2 examples of red flags in a nonprofit? - answer-> Large reductions
in administrative expenses
> Increase in accounts payable
> Losses in fixed assets
> Receiving large contribution without long-term plans
> Losses in annual surplus
Who donates the most to nonprofits?
a. Individuals
b. Bequests
c. Corporations
d. Foundations - answer-a. individuals
What is the difference between efficiency and effectiveness? - answer-
Efficiency measures are concerned with costs of activities per unit of output.
Often defined as inputs/outputs.
Effectiveness is the impact of the program upon the intended recipients, and
the quality of the results outputs/outcomes.
What is return on investment and how do you calculate it? - answer-Return
on investment is a method to quantify the efficiency of an investment to see
the comparison between how much you paid for it and how much the
investment earned.
ROI = (gain of investment-cost of investment)/cost of investment
Which of the following is not a cash flow element that would be found on the
statement of cash flows?
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