Not-For-Profit Entities

question 134

Multiple Choice

Not-for-profit entities

• A) do not use responsibility accounting.
• B) utilize responsibility accounting in trying to maximize net income.
• C) utilize responsibility accounting in trying to minimize the cost of providing services.
• D) have only noncontrollable costs.

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Definitions:

Bold-face Type

A font style that is darker and thicker than the surrounding text to emphasize importance.

Footnote

Additional information provided at the bottom of financial statements to clarify or expand on the data presented.

Pro Forma Income

An estimate of the net income and other financial metrics for a future period, based on projected revenues and expenses.

Nonrecurring

Items or events, such as extraordinary charges or gains, that are not expected to happen regularly or predictably.