Not-For-Profit Budgets Focus First on Revenues and Secondarily on Expenditures

question 48

True/False

Not-for-profit budgets focus first on revenues and secondarily on expenditures.

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Definitions:

Capital Intensity Ratio

A financial metric that measures the amount of capital needed per unit of output or the capital required to generate a dollar of revenue.

Operating Capacity

The maximum output that a company can produce under normal conditions.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholder's equity.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage or debt proportion.