Which of the Following Reporting Objectives for Not-For-Profit Organizations Allows

question 40

Multiple Choice

Which of the following reporting objectives for not-for-profit organizations allows the users to determine whether restricted funds were spent in accordance with the intended purpose?

• A)Cash flow prediction
• B)Performance evaluation
• C)Stewardship
• D)Measuring the cost of services rendered

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Definitions:

Undisclosed Principal

A principal whose existence is not known by a third party. That is, the third party does not know an agent is acting on behalf of a principal.

Personal Service

The delivery of legal documents directly to a person to inform them of legal proceedings or obligations, ensuring they are aware and can respond accordingly.

Apparent Authority

The appearance or assumption of authority based on the actions of the principal, leading others to believe that an agent has the power to act on behalf of the principal.

Actual Authority

The express and implied powers granted to an agent by the principal.