The Following Are Types of Ratios Described in Chapter 14

question 8

Short Answer

The following are types of ratios described in Chapter 14 that can be used to assess the financial performance of not-for-profit organizations:
A.Liquidity
B.Going concern
C.Capital structure
D.Program effectiveness
E.Efficiency
F.Leverage and debt coverage
G.Fund-raising ratio
H.Fund-raising efficiency
I.Investment performance
For each of the following performance indicators,indicate the type of ratio from the list above that best matches by placing the appropriate letter in the blank space next to the phrase.
_____1.Are earnings on investments on target?
_____ 2.What percentage of contributions remains after deducting the cost of raising the contributions?
_____ 3.Does the organization rely more on debt or net assets to finance its operations?
_____ 4.Is an appropriate amount spent on accomplishing the organization's program goals?
_____ 5.Are revenues sufficient to cover expenses?
A. Liquidity
B. Going concern
C. Capital structure
D. Program effectiveness
E. Efficiency

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Definitions:

House Painter

A professional tradesperson responsible for painting and decorating buildings, ensuring protection and enhancing aesthetic appeal.

Houses

Structures used as living quarters for one or more persons, typically families.

Diminishing Marginal Product

The principle stating that as additional units of a variable input are added to a fixed input, the additional output from each new unit of input will eventually decrease.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced.