A Good Measure of Whether a Not-For-Profit Organization Is "Liquid

question 59

Multiple Choice

A good measure of whether a not-for-profit organization is "liquid" and can meet its short-term obligations is:

• A) Percentage of program expenses to total expenses.
• B) Total revenues divided by total expenses.
• C) Current assets divided by current liabilities.
• D) Percentage of unrestricted net assets to operating expenses.

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Definitions:

Nonrenewable Resource

A natural resource that cannot be replaced or replenished once it is used, such as oil, natural gas, and coal.

User Cost

The cost of using a capital asset, considering factors like depreciation, interest on investment, and maintenance costs.

Property Rights

Legal rights to possess, use, and dispose of assets including land, buildings, and intellectual property.

Elephant Populations

The number of elephants living in a particular area or globally, often monitored for conservation purposes.