Which of the Following Would Be an Appropriate Performance Indicator

question 30

Multiple Choice

Which of the following would be an appropriate performance indicator for a not-for-profit health care organization?

• A) Revenues.
• B) Excess of revenues and gains over expenses and losses.
• C) Expenses and losses.
• D) Contributions to long-lived assets.

---

Definitions:

Cash Deficiency

A financial state where the cash available is not sufficient to cover the debts or liabilities owed, indicating potential liquidity problems.

Excess Cash

Funds held by a company that exceed its operational and investment needs, often indicating financial health or the potential for dividends or expansion.

Cash Excess

Situations where an entity has more cash available than is immediately needed for operational expenses.

Minimum Cash Balance

The smallest amount of cash that a company aims to hold in its cash account to meet operational needs.