What Financial Ratio Is Most Commonly Used to Evaluate Charitable

question 150

Multiple Choice

What financial ratio is most commonly used to evaluate charitable organizations?

• A) Current assets / current liabilities.
• B) Increase in net assets / total assets.
• C) Total expenses / total revenues.
• D) Program expenses / total expenses.

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Definitions:

Permissible

That which is allowed or authorized by law, ethics, or some other governing body.

Hedonistic Utilitarian

A branch of utilitarian ethics focused on maximizing pleasure and minimizing pain as the criteria for determining the moral rightness of actions.

Satisfaction of Preferences

The achievement of a state where one's desires or preferences are fulfilled or met.

Paternalists

Individuals or entities that exercise authority by making decisions for others, purportedly in their best interests, often without their consent or against their wishes.