Question 1

Put the following assets in order of liquidity: accounts receivable, inventory, cash, marketable securities.

Accepted Answer

1. Cash 2. marketable securities 3. accounts receivable 4. inventory

Question 2

Describe the difference between the Excess of Revenues over Expenses and the Increase in Net Assets without Donor Restrictions.

Accepted Answer

The Excess of Revenues over Expenses focuses on operating activities, while the Increase in Net Assets without Donor Restrictions includes non-operating changes to owners' equity.

Question 3

In a not-for-profit organization, donations received for a particular purpose are recorded as Net Assets _1.__. Donations that are cannot be spent, but the earnings can be are referred to as Net Assets _1.__. Profits and donations with no donor specifications are referred to as Net Assets ______2__.

Accepted Answer

1. With Donor Restrictions; 2. Without Donor Restrictions

Question 4

Match the following terms with the appropriate definitions.
-__ Common stock

Accepted Answer

Common stock refers to the sale of ownership shares to generate capital for a company.

Question 5

Match the following terms with the appropriate definitions.
-__ Preferred stock

Accepted Answer

Preferred stock refers to a type of ownership in a corporation that typically provides fixed dividend payments and has priority over common stock in the event of liquidation.

Question 6

Match the following terms with the appropriate definitions.
-__ Retained earnings

Accepted Answer

Retained earnings refer to the cumulative profits that a company has earned over time, which have not been distributed to shareholders as dividends but are instead reinvested in the business or held as reserves.

Quiz 12: An Even Closer Look at Financial Statements

Put the following assets in order of liquidity: accounts receivable, inventory, cash, marketable securities.

Describe the difference between the Excess of Revenues over Expenses and the Increase in Net Assets without Donor Restrictions.

In a not-for-profit organization, donations received for a particular purpose are recorded as Net Assets _1.__. Donations that are cannot be spent, but the earnings can be are referred to as Net Assets _1.. Profits and donations with no donor specifications are referred to as Net Assets __2.

Match the following terms with the appropriate definitions. -__ Common stock

Match the following terms with the appropriate definitions. -__ Preferred stock

Match the following terms with the appropriate definitions. -__ Retained earnings