The Primary Users of the Financial Statements of Private Not-For-Profit

question 122

Multiple Choice

The primary users of the financial statements of private not-for-profit organizations are:

• A) Owners of the organization.
• B) Present and potential donors.
• C) Investors.
• D) Government agencies.

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Definitions:

Net Sales

Total sales revenue after deducting returns, allowances for damaged or missing goods, and discounts.

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold in a company.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the financial performance of a company's core business activities.

Tracking Inventory

The process of monitoring the quantity, location, and status of products available within a business to manage supply levels efficiently.