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.

Understand the concepts and calculations related to the cash conversion cycle (CCC), Days of Inventory (DOI), Days Sales Outstanding (DSO), and Days Payable Outstanding (DPO).

Distinguish between different types of business financial statements and their purposes.

Identify and define current assets and their significance in business financials.

Calculate and interpret key financial ratios and cycles relevant to business performance evaluation.

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Definitions:

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