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Balance Sheet
Cash Flow
Liabilities
Easy(ish) Questions
Questions from the Book
100

What is an income statement?

 What is a financial document that summarizes a company's revenues and expenses over a specific period, showing how much money the company made or lost.

100

This financial statement shows how money flows in and out of a company over time?

What is a cash flow statement?

100
What are current liabilities?
Current liabilities are those obligations that will mature and must be paid within 12 months.
100
What is the accounting equation?
Assets = Liabilities + Owner's Equity
100
How many distinct types of non-profit corporations are there? Name at least one.
There are 6 Direct service providers Information managers Resource distributors Support and development providers Grant makers or funders Social organizations
200

What does gross profit mean?

 What is the difference between sales revenue and the cost of goods sold (COGS).

200

Cash received from selling equipment would be classified under this part of the cash flow statement.

What is investing activities?

200
The assets and liabilities of an organization are whose responsibility?
The Board of Directors
200
Why is it called a balance sheet?
Because the two sides balance out.
200
What does it mean for a non-profit to be tax exempt?
Must show the organization has been created and will be operated with certain purposes in mind; according to pre-established guidelines spelled out in the code. Then it must wait for the IRS’s decision on the application.
300

What are operating expenses?

What is the costs required to run a business that are not directly tied to the production of goods or services, such as rent, utilities, and salaries.

300

Investors analyze this statement to determine a company's ability to generate cash and meet obligations.

What is a cash flow statement?

300
What are Accrued liabilities?
All expenses incurred by the business that are required for operation but have not yet been paid at the time the books are closed.
300
What is included in a balance sheet?
Anything within or owed by your business that has monetary value is included in the balance sheet.
300
Who is interested in hybrid corporations?
Social enterprise practitioners
400

What is net income?

What is the total profit of a company after all expenses and taxes have been deducted from total revenue

400
True or False... Boards invest assets entrusted to them, while managers spend funds allocated to them.
True
400
What are long-term liabilities?
Liabilities that are carried over a number of years or at least more than one accounting cycle. Examples of long-term liabilities are mortgages payable, bonds payable, and long-term notes.
400
What are Balance sheets used for?
The balance sheet presents a company's financial position at the end of a specified date. It’s a “snapshot” of a company’s financial position at a certain point in time.
400
True or False... Programs are the most visible and best understood aspect of the non-profit form of business organization, and its chief means of carrying out its mission
TRUE
500

What is revenue?

The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income.

500
Which of the following would not be a current asset? Accounts receivable, land, prepaid insurance, supplies
Land is not a current asset because land will not turn into cash within one year of the balance sheet date.
500
Name one item in the liabilities section of a balance sheet.
Accounts payable and accrued expenses Grants payable Deferred revenue Tax, exempt bond liabilities Escrow or custodial account liability Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified persons Secured mortgages and notes payable to unrelated third parties Unsecured notes and loans payable to unrelated third parties Other liabilities
500
Are accounts payable found under assets or liabilities?
Liabilities
500
True or False... Executives do not share leadership responsibilities with the board?
False