Books for Africa is a not-for-profit organization that collects used books and ships them to schools and villages in Africa.They have no government support and try to raise most of their funds from wealthy individuals.Which of the following would be an objective of Books for Africa's financial reporting?

Question

Quizplus · Accepted Answer

Since Books for Africa relies on donations from wealthy individuals, it is important for their financial reporting to have an objective of performance evaluation. This will allow the organization to track and report on their financial progress, and show donors how effectively their contributions are being used. Minimum compliance, income smoothing, and tax minimization are not relevant objectives for a non-profit organization like Books for Africa.

Books for Africa Is a Not-For-Profit Organization That Collects Used