Which of the Following Statements Is Correct

question 37

Multiple Choice

Which of the following statements is correct?

• A) Unrestricted resources can be used for any purposes by a not-for-profit organization.
• B) Unrestricted resources can be used for any purposes that are consistent with the goals and objectives of the not-for-profit organization.
• C) Restricted resources can only be used in the case of a serious financial deficit situation.
• D) Both restricted and unrestricted funds must be used in accordance with the wishes of the contributor.

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Definitions:

Vacation Benefits

Employee benefits that provide paid or unpaid time off from work for holidays, vacations, and personal time.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its interest expense to its earnings before interest and taxes.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, typically evident in the form of interest payments on loans, bonds, or credit lines.

Income Before Interest

The earnings a company generates before interest expenses are deducted, used to analyze the profitability of operations without the impact of its capital structure.