For a Not-For-Profit College or University, Which of the Following

question 18

Multiple Choice

For a not-for-profit college or university, which of the following categories of net assets is NOT appropriate in its external financial statements?

• A)Unrestricted net assets.
• B)Temporarily restricted net assets.
• C)Permanently restricted net assets.
• D)None.All of the above are appropriate.

Understand the calculation and interpretation of financial ratios.

Understand the principles of liquidity and how transactions affect it.

Grasp the concepts of financial statement analysis, including vertical and horizontal analysis.

Understand the impact of operational decisions on financial metrics.

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Definitions:

Retirement Fund

Financial resources that have been saved and are used to support a person's retirement.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments.

Compounded Monthly

The method of determining interest that includes both the original principal sum and the interest that has previously been added up over past months.

Invest

Allocating resources, usually money, in the expectation of generating an income or profit.