The Ratio Unrestricted Net Assets as a Percent of Operating

question 26

True/False

The ratio unrestricted net assets as a percent of operating expenses is helpful in determining if the not-for-profit organization can cover its debt service expense.

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Definitions:

Dividend Payable

The amount of money a company is committed to paying its shareholders in dividends for owning the company's stock.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value remains the same.

Market Value

The present rate at which a company or asset is available for purchase or sale on the market.

Book Value

The net value of a company's assets minus its liabilities, often used to assess a company's financial health.