A Good Measure That Can Be Used to Help Assess

question 15

Multiple Choice

A good measure that can be used to help assess whether a not-for-profit organization is spending too much on overhead, such as general and administrative expenses, is:

• A) Percentage of unrestricted net assets to operating expenses.
• B) Current ratio.
• C) Total revenues divided by total expenses.
• D) Percentage of program expenses to total expenses.

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Definitions:

Simplify

Refers to making an expression or problem easier to work with by reducing it to its most basic form.

Combine

Refers to the process of joining two or more items together to form a single entity, used in various contexts including mathematics, where it may involve summing like terms.

Combine

The act of joining or merging two or more items into a single entity, often used in mathematical operations like addition or combination.

Simplify

The process of making an expression easier to understand or solve by reducing it to its most basic form.