Which of the Following Is Not True

question 26

Multiple Choice

Which of the following is not true?

• A)A not-for-profit entity operates for purposes other than to provide goods or services at a profit.
• B)A not-for-profit entity may be governmental or non-governmental.
• C)A not-for-profit entity may possess ownership interests like a corporation.
• D)A not-for-profit entity receives resources from resource providers who do not expect commensurate or proportionate pecuniary return.

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Definitions:

Asset Test

A measure of the liquidity of a company by comparing its liquid assets to its current liabilities.

Reportable Segment

A distinguishable component of an enterprise engaging in operations from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker.

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of interest and tax, as well as any non-operational income and expenses.

Loss

A financial situation where expenses exceed revenues.