A Measure of Performance That Expresses How Much an Organization

question 22

Multiple Choice

A measure of performance that expresses how much an organization expends in raising a dollar of donations is:

• A) Fund-raising efficiency.
• B) Program expense ratio.
• C) Working capital ratio.
• D) None of the above.

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Definitions:

Useful Life

The estimated time period that an asset is expected to be usable for its intended purpose.

Simple Rate Of Return

A calculation used to evaluate the profitability of an investment, determined by dividing the annual incremental net operating income by the initial investment cost.

Salvage Value

The expected residual worth of an asset upon the conclusion of its effective lifespan.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.