Certificate Program in Church Treasury

Thank you for completing the Session Four quiz. Below are correct answers (in bold).

Session Four Quiz

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)
d. None of the Above

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
d. None of the Above

5. Assets are increased by

a. Debit
b. Credit

6. Liabilities are increased by

a. Debit
b. Credit
c. Both
d. Neither

7. Net Assets can be either Donor Restricted or Unrestricted

a. True
b. False
c. It depends
d. It’s unclear

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 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
c. It depends
d. It’s unclear

10. Which is NOT a part of the Fraud Triangle as an inducement to commit fraudulent activity?

a. Guilt
b. Pressure
c. Opportunity
d. Rationalization