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:

Perilous Situation

A dangerous or risky circumstance that can potentially lead to harm.

Ordinary Situation

A scenario or condition that is considered common, typical, or usual in everyday life.

Distant Relative

A family member who is not closely related, often beyond immediate family such as cousins several times removed, or through remote ancestral connections.

Bystander-Calculus Model

In attending to an emergency, the bystander calculates the perceived costs and benefits of providing help compared with those associated with not helping.