Which of the Following Statements About a Not-For-Profit Firm's Fund

question 8

Multiple Choice

Which of the following statements about a not-for-profit firm's fund capital is most correct?

• A) The sole source of fund capital is the excess of revenues over expenses.
• B) Fund capital has a zero opportunity cost.
• C) Fund capital can only come from donations.
• D) Fund capital does not change over time.
• E) Fund capital is equivalent to equity capital in investor-owned firms.

---

Definitions:

Fiscal Period

A specified period of time used for financial reporting and budgeting, typically a year, quarter, or month.

Biweekly Salaries

Payments made to employees every two weeks, totaling 26 payments throughout the year.

Unearned Revenue

Money received by a company for a product or service that has yet to be delivered or performed.

Retainer Fee

A prepaid fee charged by professionals to clients to secure their services for a specified period.