Performance Measurement Is One of the Ways a Nonprofit Can

question 48

True/False

Performance measurement is one of the ways a nonprofit can ensure it is achieving its mission.

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Definitions:

Closing Journal Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the company's books for the next period.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.

Current Liabilities

Financial obligations a company is required to pay within one year or within the normal operating cycle.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.