Question

1. One reason for the disdain is that incremental budgeting is frequently performed on a so-called _____________, which merely list the different classes of expenses and which does not inform the manager about the function and outcome of the expenses.

Categorized Budget

Summary Budget

Line Item Budget

Approximated Budget

2. Not-for-profit organization executives lose their jobs because of poor _____________ skills than for any other reason.

Community Outreach

Administrative Management

Employee Compensation

Financial Management

3. The current year financial goal should be related directly to the long-range plans’ _____________ for the current year.

Accounting Goals

Reporting Goals

Financial Goals

Program Goals

4. Non-profit management must take the necessary steps to ensure that the accounting staff is competent in __________________ for non-profit organizations.

Generally Accepted Accounting Principles (GAAP)

Grant Reporting Practices

Online Financial Tracking

Revenue Generation

5. The budget cycle for a non-for-profit includes all the below steps EXCEPT:

Long range plan

Current year programs

Current year capital budget

Monthly budget meeting

Answer 1

Answer(1): Summary Budget

Summary Budget does not categorize the expenses and their sources,

Answer(2): Financial management

Not for profit organizations' employees lose their job because of poor financial management, In not for profit organization, the management is not so organized and there are lack of board of directors, chairman, executives, treasurer, budget and finance committee.

Answer(3): Financial Goals

The current year financial goal should be related directly to the long-range plans of Financial Goals only.

Answer(4): Generally Accepted Accounting Principles (GAAP).

Accounting staff of Non profit organization should be competent in GAAP for non profit organization. Accounting function should be taken care by the competent staff.

Answer(5): Monthly budget meeting

The budget cycle for a non-for-profit includes all the below steps except Monthly budget meeting