A Good Measure of Whether a Not-For-Profit Organization Is a "Going

question 34

Multiple Choice

A good measure of whether a not-for-profit organization is a "going concern" and can sustain its operations into the future is:

• A) Total revenues divided by assets.
• B) Percentage of unrestricted net assets to operating expenses.
• C) Percentage of program expenses to total expenses.
• D) Fund-raising expenses as a percentage of public support.

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Definitions:

Journal Entries

Records that document all the financial transactions of a business and show the accounts affected by each transaction.

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as its original cost minus accumulated depreciation or amortization.

Bonds

A fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage of the principal.