Terms
The amount owed to others for services or merchandise received by the organization.
What is an Account Payable
Accounting equation
What is Assets - Liabilities =Net Assets
Income statement equivalent in a the nonprofit world
What is a Statement of Activities?
Appropriate Liquidity
What is having resources available to absorb risk to new opportunities?
The opposite of surplus
What is a deficit. It is the amount by which a resource falls short of a mark.
The recording of debit and credit parts of a transaction.
What is double entry accounting?
Something owned by a company.
What is an asset?
One of the primary financial reports for an organization, reporting the assets, liabilities, and net assets as of a specific date
What is the Statement of financial position?
Reports an entity's assets, liabilities, and the difference in their totals.
That is the Statement of Financial Position
Accounting system tool for recording all transactions.
What is a General Ledger?
The systematic recording, reporting, and analysis of financial transactions of an organization. Accounting allows an entity to analyze the financial performance of the organization, and look at statistics based on the results
What is Accounting
Something owed by an entity
What is a liability?
a financial report that has been tested and verified for accuracy by a Certified Public Accountant (CPA) and prepared in accordance with Generally Accepted Accounting Principles.
What is an audit?
Revenue reliability
What suggests an ability to predict levels of income based on historical performance?
Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property
What is an asset
Those liabilities due to be paid now or within the next twelve months.
What is a Current liabilities?
What is left after anything owed is taken from anything owned.
What is net assets
Financial statement footnotes
What are the explanatory and supplemental notes that accompany the financial statements issued by an entity
What is the income statement or Statement of Activities?
An Expense
What is the cost of doing business resulting from revenue generating activities
A condition stipulated by an organization’s board of directors on how an amount of money is to be used. A common type of board designation is for Operating Reserves. For accounting purposes, these funds are considered unrestricted because the condition was not specified by a donor.
What are Board Designated Funds
The most liquid asset of all.
What is cash?
Report showing the movement of money during a specified period of time.
What is the Statement of Cash Flows
When nonprofits are encouraged to set revenue targets high enough to cover direct and indirect expenses.
What is Full cost coverage?
The amount by which income exceeds costs
What is surplus