Nonprofit Organizations

question 24

Multiple Choice

Nonprofit organizations:

• A) are usually in the business of financial gain.
• B) do not contribute to a region's economic stability and growth.
• C) account for more paid workers than the entire construction industry.
• D) are not business-like establishments.

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Definitions:

Compounded Annually

A method of calculating interest where the interest is added to the principal at the end of each year, and the following year's interest is calculated on the total amount.

Amortization of Bond Discount

The gradual reduction of a bond discount over the life of the bond, transferring it from the balance sheet to interest expense on the income statement.

Semiannual Interest

Interest that is calculated and paid twice a year on investments or loans.

Straight-line Method

A method of allocating an asset's cost evenly across its useful life.