Thank you for completing the Session Four quiz. Below are correct answers (in bold).
1. The financial statement that reports the sources (revenues) and expenses (uses) for a period of time such as a year is the:
a. Balance Sheet / Statement of Financial Position
b. Income Statement / Statement of Activities
c. Statement of Cash Flows
2. The financial statement that reports the assets, liabilities and net assets / fund balance on a specific date is the:
a. Balance Sheet / Statement of Financial Position
b. Income Statement / Statement of Activities
c. Statement of Cash Flows
3. Sources (Revenues) minus Uses (Expenses) equals:
a. Non-Taxable Income
b. Cash
c. Net Sources (Income) over / under Uses (Expenses)
4. Obligations (amounts owed) are reported on the Balance Sheet / Statement of Financial Position and are referred to as:
a. Assets
b. Uses (Expenses)
c. Liabilities
5. Assets are increased by:
a. Debit
b. Credit
6. Liabilities are increased by:
a. Debit
b. Credit
7. Net Assets can be either Donor Restricted or Unrestricted.
a. True
b. False
8. Which of the following is NOT a good Internal Control?
a. Segregation of Duties
b. Annual Audit
c. Pastor’s signature on all checks
d. All of the above
9. Non-profit organizations, such as churches, should never have a surplus at year end or they will jeopardize their non-profit status.
a. True
b. False
10. Which is NOT a part of the Fraud Triangle as an inducement to commit fraudulent activity?
a. Guilt
b. Pressure
c. Opportunity
