What Financial Ratio Is Most Commonly Used to Evaluate Charitable

question 12

Multiple Choice

What financial ratio is most commonly used to evaluate charitable organizations?

• A) Current assets / current liabilities.
• B) Program expenses / total expenses.
• C) Increase in net assets / total assets.
• D) Total expenses / total revenues.

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Definitions:

Prediction Interval

An estimate of an interval in which future observations will fall, with a certain probability, given what has already been observed.

Statistical Software

Computer programs used to analyze data and perform statistical operations, including analysis, interpretation, and visualization.

Sales

The act of trading a good for monetary compensation; the process of making a sale.

Profits

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.