Read 'Chapter 1: What Every Nonprofit Manager Should Know About Accounting and Finance' & answer the following question(s): |
1. | “Different costs for different purposes” is a central idea of management accounting and financial management, which allows for flexibility in meeting internal user needs. T F |
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2. | Funding options available to nonprofit organizations include pooled bond issue and private bond offerings. T F |
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3. | All of the following statements are correct EXCEPT |
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4. | Sunk costs cannot be relevant to |
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5. | Fixed costs that are never relevant to decisions include |
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Read 'Chapter 2: Accounting Basics for Nonprofits' & answer the following question(s): |
6. | Expenses must be reported in which class of net assets? |
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7. | Restricted grants should initially be recorded as |
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8. | Contractual obligations are called |
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9. | Nonprofits can recognize unconditional pledges as assets when made even though the actual cash is still not received. T F |
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10. | Most larger NPOs use which basis of accounting? |
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11. | Revenue must be spent consistent with regulations, limitations, or restrictions. T F |
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12. | A statement of cash flows is to be presented in general-purpose external financial statements by which of the following? |
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13. | According to SFAS 116, Accounting for Contributions Received and Contributions Made, what classification(s), if any, should be used by not-for-profit organizations to report receipts of contributions? |
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14. | Which of the following nongovernmental not-for-profit organizations must report information about expenses by natural classification? |
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Read 'Chapter 3: Cost-Volume-Revenue Analysis: Are We Breaking Even?' & answer the following question(s): |
15. | Revenue minus variable costs is called |
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16. | Cost-volume-revenue (CVR) is used to analyze |
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17. | Some nonprofit entities may have only fixed source of revenue, typically a government budget appropriation. In this case, the break-even formula becomes |
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Read 'Chapter 4: Financial Analysis and Metrics: Avoiding Bankruptcy' & answer the following question(s): |
18. | The average accounting age of equipment may be computed as |
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19. | Measures of performance (or metrics) for a college include number of courses and ratio of faculty to students. T F |
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20. | In analyzing the Statement of Activities for NPOs, determine: |
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Read 'Chapter 5: Forecasting: Revenues, Costs, and Cash Flows' & answer the following question(s): |
21. | Cash flow forecasting can serve a number of goals, including |
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22. | The table t value, based on a degree of freedom and a level of significance, is used |
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23. | In exponential smoothing, the optimal smoothing constant a may be picked by minimizing the |
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24. | Multiple regressions involve |
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25. | Which one of the following is a qualitative forecasting technique? |
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26. | The equation(s) required for applying the least-squares method could be expressed as |
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Read 'Chapter 6: The Budgeting Process: Device for Planning and Control' & answer the following question(s): |
27. | A childcare center can care for 50 children. The expected number of students is 70%. The center operates 48 weeks a year. It is open 40 hours a week. The hourly rate is $5. The budgeted gross revenue is |
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28. | The journal entry for a purchase order is to |
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29. | Which type of budget relates the inputs of resources to the output of services? |
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30. | The line item budget lists the sources of revenue and categories of expenses (object accounts). T F |
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31. | Which type of budget starts fresh each year and all activities (new and old) must be justified? |
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32. | Which budget lists and describes planned capital acquisitions and improvements? |
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Read 'Chapter 7: Zero-Base Budgeting and Program Budgeting' & answer the following question(s): |
33. | Zero base budgeting requires managers to justify each budget line item. T F |
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34. | ZBB is a continual process. Each manager must justify his budget request in detail from a zero base. T F |
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35. | Programs may be considered either direct or support. T F |
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36. | Under program budgeting, a project should be broken down by major activity or task, and then further segregated into subactivities. T F |
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Read 'Chapter 8: Cost Behavior, Cost Control, and Flexible Budgeting' & answer the following question(s): |
37. | Determine the material quantity variance using actual production of 100 units of output, 3 pieces allowed per unit, actual price of $2 per piece, and standard price of $3 per piece. Assume the company used 240 pieces of material. |
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38. | The cost-volume formula would be expressed as |
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39. | An understanding of cost behavior is helpful |
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40. | Marie Welfare Agency incurred a total cost of $8,600 to provide 40 units of service. Each unit of service required 5 direct labor hours to complete. What are the total fixed costs if the variable cost was $15 per direct labor-hour? |
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41. | Unfavorable labor efficiency variances may be explained by poor supervision, poor quality workers, poor quality of materials requiring more labor time, and employee unrest. T F |
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Read 'Chapter 9: Enhancing Managerial and Department Performance' & answer the following question(s): |
42. | The contribution approach is one method under which center concept? |
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43. | Output indicators or control surrogates of welfare and rehabilitation agencies include |
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44. | Responsibility centers of nonprofit organizations can be viewed as either mission centers or service centers. T F |
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45. | Allocated general fixed costs |
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Read 'Chapter 10: Obtaining Funds: Short-Term and Long-Term Financing' & answer the following question(s): |
46. | The opportunity cost associated with failing to pay a vendor on terms of 2/10, net/30 is |
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47. | An NPO has received donations in 20X5 of $250,000 and in 20X4 of $280,000. The estimated amount of donation for 20X6 based on a simple average is. |
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48. | A telephone bill is an example of a |
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49. | An NPO borrows $500,000 for one year at a 10% interest rate. There is a 5% compensating balance. The interest and compensating balance are deducted at the time of the loan to arrive at the loan proceeds. The effective interest rate is |
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Read 'Chapter 11: Managing Working Capital and Investing Surplus Funds' & answer the following question(s): |
50. | Short-term notes issued by the U.S government are called |
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51. | Factors to be considered in investment decisions for nonprofit financial managers are |
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52. | Financial securities cover a broad range of investment instruments, excluding |
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53. | Which one of the following is a cash management model? |
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54. | The agency should not take advantage of a cash discount offered for early payment because failing to do so results in a low opportunity cost. T F |
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55. | With leveraged derivatives, when you win, you win big. But when you lose, you lose big. T F |
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Read 'Chapter 12: Cost Management and Pricing Decisions' & answer the following question(s): |
56. | Allocating the service center costs to the mission centers may be accomplished by one of the following procedures |
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57. | Benefits from an ABC system are numerous from the standpoint of planning, control, and decision-making. They include |
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58. | A proper cost driver for employee insurance would be |
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59. | In an effort to enhance product or service costing accuracy, activity-based costing (ABC) uses a larger number of cost drivers than the one or two volume-based cost drivers typical in a conventional system. T F |
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60. | Allocation of support department costs to the mission departments is necessary to |
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61. | The step-down method of support department cost allocation often begins with allocation of the costs of the support department that |
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Read 'Chapter 13: Analysis for Short-Term and capital expenditure decisions and Financial Modeling' & answer the following question(s): |
62. | An initial investment of $20,000 generates annual benefits of $8,000. The payback period is |
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63. | The make or buy decision must be investigated, along with the broader perspective of considering how best to utilize available facilities. The alternatives are |
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64. | An agency can either purchase a mini-computer for $61,000 or lease it at an annual $13,000 payment and own it after five years. The anticipated discount rate will be 8 percent. The present value of $13,000 a year for five years at 8% is |
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65. | Applications and uses of financial models include |
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66. | In a make or buy decision |
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67. | One of the popular financial modeling software used by hospitals is HOFPLAN. T F |
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68. | The present worth of future sums of money is |
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69. | A method of evaluating investment projects does not include |
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70. | An annuity is a series of payments of a fixed amount for |
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