One of the Limitations of Financial Ratio Analysis for Not-For-Profit

question 6

True/False

One of the limitations of financial ratio analysis for not-for-profit organizations is that donors may incorrectly assume that there are federal or state laws that govern the percentage of annual revenues that a charity must spend on its programs.

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Definitions:

Protected Classes

Groups of people legally shielded from discrimination, based on characteristics such as race, gender, age, and religion.

Equal Pay Act

Statutes established to eradicate pay imbalances along gender lines, ensuring equal remuneration for men and women performing work of equal worth.

Wages Paid

Monetary compensation or salary disbursed to employees for their labor or services during a specific period.

Major Life Activity

refers to activities that are of central importance to daily life, such as walking, seeing, hearing, speaking, breathing, learning, and working, often used in legal contexts concerning disability.