Certificate Program in Church Treasury

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 the Above

9. Banks take into consideration which of the following for extending credits:

a. Number of Members
b. Debt to Income Ratio
c. Tenure of the pastor

10. One of the top three hazards or pitfalls impacting churches related to banking is:

a. Fraud
b. Embezzlement
c. Too much debt