Even Though a Church Is Not Required to Obtain IRS

question 128

True/False

Even though a church is not required to obtain IRS approval of its exempt status, it still annually must file a Form 990.

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Definitions:

Generally Accepted Accounting Principles (GAAP)

A collection of commonly-followed accounting rules and standards for financial reporting within the United States.

Reported Profit

The profit figure announced by a company, typically found in its financial statements, after accounting for all expenses.

Accrual Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, respectively, regardless of when the cash is actually exchanged.

Operating Performance

A measure of a firm's efficiency in managing its core business operations, often evaluated using metrics such as operating margin and revenue growth.