Which Statement Is True Concerning Budgeting in Not-For-Profit Organizations

question 138

Multiple Choice

Which statement is true concerning budgeting in not-for-profit organizations?

• A)It is not necessary since the goal is not profit-oriented.
• B)It usually starts with budgeting receipts, following by expenditures.
• C)It is based on cash flows rather than revenues and expenses.
• D)The budget must be approved by the shareholders.

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Definitions:

Ledger

A comprehensive collection of a company's financial transactions, divided into individual accounts, and recorded in a way that balances are always maintained across assets, liabilities, and equity.

Physical Inventory

The manual count of all merchandise or stock in a store or warehouse at a particular time.

Estimated Returns Inventory

A reserve of products anticipated to be returned by customers, accounting for potential future merchandise returns.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company’s books for the next period.