A Measure of Performance That Expresses How Much an Organization

question 22

Multiple Choice

A measure of performance that expresses how much an organization expends in raising a dollar of donations is:

• A) Fund-raising efficiency.
• B) Program expense ratio.
• C) Working capital ratio.
• D) None of the above.

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Definitions:

Joint Operation

An arrangement where two or more parties undertake an economic activity that is subject to joint control, where the parties have rights to the assets and obligations for the liabilities.

One-Line Method

An accounting technique used in the consolidation of financial statements where a parent company reports the net assets and results of a subsidiary in a single line.

Joint Venture Liabilities

The financial obligations that are incurred jointly by partners in a venture, which must be settled together.

Line-by-Line Method

A consolidation technique where the parent company combines its subsidiary's assets, liabilities, income, and expenses line by line into its own financial statements.