Which of the Following Is Not True About Not-For-Profit Corporations

question 4

Multiple Choice

Which of the following is not true about not-for-profit corporations:

• A)formed to serve some public purpose rather than financial gain
• B)exempt from paying income taxes if its purpose is religious,educational, scientific or literary and its revenues are less than $1 million
• C)those who contribute to not-for-profit corporations can take a tax deduction
• D)there are more than 1.5 million not-for-profit organizations in the U.S.

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Definitions:

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain capital assets. It's an important measure of financial health.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve long-term operations.

Indirect Method

A way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions.

Accounts Receivable

Outstanding payments due to a company from its customers for delivered goods or services.