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

question 59

Multiple Choice

A good measure of whether a not-for-profit organization is "liquid" and can meet its short-term obligations is:

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

---

Definitions:

Neutral Response

A reaction that is neither positive nor negative, often reflecting indifference or lack of preference.

Routine Inquiry

A standard or common question asked to gather information or clarify details about a particular subject or process.

Open With

Refers to the manner or strategy used to begin a written document, presentation, or conversation aimed at capturing the audience's attention.

Conciseness

Conciseness refers to expressing ideas or information clearly and briefly, using as few words as necessary to convey meaning effectively without unnecessary elaboration.