Financial Management Involves Decisions About Which of the Following

question 2

Multiple Choice

Financial management involves decisions about which of the following?

• A)Which projects to fund
• B)How to minimize taxation
• C)What type of capital should be raised
• D)All of these

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Definitions:

Restricted Fund Method

An accounting strategy used for tracking and reporting separately on resources that are restricted by donors for specific purposes.

Capitalize

To record a cost/expense on the balance sheet for the purposes of delaying full recognition of the expense over time through depreciation or amortization.

Expense Capital Assets

The process of recording the cost of a capital asset as an expense over its useful life, often through depreciation or amortization.

Not-for-profit Organization

A type of organization that does not distribute its excess profits to owners or shareholders but instead uses them to help achieve its goals.