A Program Effectiveness Ratio Is Helpful in Assessing Whether a Not-For-Profit

question 53

True/False

A program effectiveness ratio is helpful in assessing whether a not-for-profit is using its resources to accomplish its mission or goals.

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Definitions:

Parts Resale Value

The estimated resale value of machine parts or other components after they have been used or at the end of their useful life.

CCA Rate

Capital Cost Allowance Rate, the rate at which a business can claim depreciation on capital assets for tax purposes in certain jurisdictions.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Depreciation Tax Shield

The reduction in taxable income for businesses that results from claiming depreciation expenses, thereby lowering tax liabilities.