Nicole is the Executive Director of a local food bank and is assessing the financial situation of her not-for-profit organization.Nicole uses a(n)_____ to determine whether revenues from contributions and other sources will cover operating costs.
A)statement of cash flows
B)income statement
C)balance sheet
D)accrual accounting

Question

Quizplus · Accepted Answer

An income statement is used to determine if the revenues from contributions and other sources are sufficient to cover operating costs for a specific period. It shows the organization's financial performance, including income and expenses.

Nicole Is the Executive Director of a Local Food Bank