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Chapter: 2 -Problem: 15 >> What is a modified cash basis of accounting?
Answer Preview: Modified cash is a system that treats most …

, Chapter: 2 -Problem: 8 >> How are budgets useful for motivation?
Answer Preview: Budgets present specific, measurabl…

, Chapter: 15 -Problem: 10 >> The municipality of Lossburgh reported the following information about its pension fund in its CAFR, for the year ended June 30, 2015, prior to recent GASB changes:  Calculate the funded ratio, the benefits coverage ratio, and the ratio of investment earnings to benefits for both years. Assume that an 80 percent funded ratio was considered the rule of thumb for adequate funding, that 891 holding
Answer Preview: All indicators are below the benchmarks suggested. Although funded rati…

, Chapter: 2 -Problem: 22 >> Local Hospital (LH) has decided that it would like to send nurses to a local supermarket to provide a free health screening for interested supermarket customers. The screening will consist of measuring the individual’s blood pressure and taking a drop of blood, which will immediately be tested for several critical indicators. The director of public relations at the hospital believes that 100 peopl
Answer Preview: Re ven ues : Grant from Super market : $ 1 , 000 Exp enses : N u…

, Chapter: 6 -Problem: 1 >> What are the various types of long-term debt?
Answer Preview: Long-term debt inclu…

, Chapter: 2 -Problem: 30 >> Draft a quarterly cash budget for Zoo Extravaganza (ZE) for the first two quarters of the coming year. Use just the information in this problem.  You know from past experience that not all of your revenue and support is collected when you earn it. Cash contributions are collected in the quarter they are pledged. Federal government grants are collected one quarter after you send the granting agen
Answer Preview: Re venue Budget : Cash Contributions : $ 1 , 000 , 000 Federa…

, Chapter: 8 -Problem: 14 >> If we know that a variance is the result of an uncontrollable price increase for a supply item that we must have, do we need to investigate and make a report regarding the variance? Why or why not?
Answer Preview: Absolutely. The variance should be investigat…

, Chapter: 2 -Problem: 17 >> Finn Fixes is a new charity that repairs donated cars for use by unemployed job seekers. Finn collects the cars from area junkyards. The first year Finn is in operation, jobs programs bought cars from the organization for $60,000. They paid Finn $45,000 during the year and owe $15,000. Finn uses donated, unskilled labor and free garage space at a local high school. Its only cost is for parts. Tota
Answer Preview: The first year cash profit is $(7,000). The accrual basis profit is $2,0…

, Chapter: 9 -Problem: 19 >> When can liabilities be recorded?
Answer Preview: Liabilities are recognized …

, Chapter: 7 -Problem: 30 >> Meals for the Homeless usually experiences seasonality in its cash balances. In December, contributions from donors increase its cash balances, and then these balances are used throughout the following year. By the fall, Meals for the Homeless has a tight cash flow. It has a line of credit with its bank, which allows it to draw up to $500,000 at 7 percent interest per year. During 2017, Meals for
Answer Preview: Given that Meals for the Homeless experiences seasonality in its cash balances, it is likely that th…

, Chapter: 15 -Problem: 11 >> How did Lossburgh’s pension fund compare to these benchmarks? What trends do you observe?
Answer Preview: In the world of business, a trend is a pattern of gradual change in a process, output, or condition. …

, Chapter: 15 -Problem: 6 >> Are liquidity ratios appropriate for financial condition analysis?
Answer Preview: Liquidity ratios are quite applicable to governme…

, Chapter: 6 -Problem: 19 >> Assume an organization could issue a zero coupon bond at an annual interest rate of 4 percent with semiannual compounding for 20 years. If it receives $2,264.45 for the bond, how much would it have to pay at the maturity date? 6-20. On January 1, 2016, Central City issued a 20-year serial bond to finance improvements to the water distribution system. A total of $80,000,000 face value of bonds were
Answer Preview: A. Spreadsheet Solution B. Financial Calculator Solut…

, Chapter: 3 -Problem: 10 >> Performance budgeting is concerned more with reducing costs than with monitoring outcomes. True or false?
Answer Preview: F…

, Chapter: 4 -Problem: 21 >> Answer the following questions about break-even analysis. 1. Break-even analysis for multiple products requires a _________________ approach. 2. The contribution margin must be a positive number for the organization to have any chance of having a _______________________. 3. The NYU Concert Band has fixed costs of $200 per concert and variable costs of $1.00 per person who attends the concert. If t
Answer Preview: 1. Weighted av…

, Chapter: 7 -Problem: 16 >> Can just-in-time inventory work in public service organizations? Why or why not?
Answer Preview: JIT philosophy seeks to minimize those costs associated with handling and storing inventory th…

, Chapter: 4 -Problem: 12 >> When determining costs, which of the following factors will not be taken into account? a. The cost objective b. The relevant range of time c. The relevant range of volume d. Who is measuring the cost. e. Whether the person asking the question is inside or outside the organization
Answer Preview: d. Who is measuring t…

, Chapter: 2 -Problem: 20 >> They paid Finn $45,000 during the year and owe $15,000. Finn uses donated, unskilled labor and free garage space at a local high school. Its only cost is for parts. Total parts cost $58,000 for the year. During that first year Finn paid its parts suppliers $52,000. It owes its suppliers the balance. 1. What is the profit or loss to Finn Fixes on a cash basis? 2. What is the profit or loss to Finn
Answer Preview: Calculations. 1. Finn Fixes would have a cash profit of $3,000. This would be calculated by taking t…

, Chapter: 8 -Problem: 24 >> Burnham Elementary School spent $100,000 on textbooks for the fall 2016 semester. It had expected to have a total enrollment of 450 students who would each have needed four books at a cost of $65 each. What is the textbook expense variance? Is it favorable or unfavorable? Why?
Answer Preview: The total variance is $100,000 …

, Chapter: 8 -Problem: 32 >> Rob West is the director of Eyeglasses for the Poor (EP). EP receives donations of eyeglasses and recycles them for use by the nearsighted needy around the world. Sometimes the eyeglass frames are expensive designer frames that can be sold to raise operating funds for the organization. Rob is concerned that EP’s resources are not adequately safeguarded. This problem is compounded by the fact that
Answer Preview: TO: Rob West FROM: [Your name] DATE: [Date] RE: Enhancing internal controls Dear Rob, Thank you for …

, Chapter: 2 -Problem: 13 >> What are the elements of the budget cycle?
Answer Preview: (1) The budget is first prepared. (2) After review by the body with adoption authorit…

, Chapter: 2 -Problem: 19 >> Answer the following questions about methods of accounting.On the accrual basis of accounting, revenues and support are recognized when an organization ________ an amount that it is likely to collect, and it recognizes expenses when it ________ a resource. 2. Accrual-based expenses associated with capital assets are called ________. 3. Capital projects are evaluated on the ________ basis of accoun
Answer Preview: 1 . On the acc ru al basis of accounting , revenues and support …

, Chapter: 3 -Problem: 12 >> Which of the following is not true about zero-based budgeting? a. Generally more costly to prepare b. Reevaluates all program activities every year c. Most commonly used budget method d. Reduces “slack” in budgets
Answer Preview: c. Most …

, Chapter: 3 -Problem: 18 >> What do functional financial statements do?
Answer Preview: These statements separat…

, Chapter: 7 -Problem: 28 >> Accounts payable are amounts owed by an organization that have not yet been paid. Name two specific types of accounts payable.
Answer Preview: Wages payable, notes pay…

, Chapter: 7 -Problem: 26 >> An inventory management system that relies primarily on physical counts of inventory is said to be using the a. Perpetual method b. Periodic method c. Warehouse-control method.
Answer Preview: b. …

, Chapter: 11 -Problem: 14 >> Please use the following choices to fill in the blanks in the next two questions: a. unrestricted  b. temporarily restricted c. permanently restricted 1. When Professor Chellman endows an annual lecture series at the Wagner School, he stipulates that only the interest income derived from his gift may be used to fund the program. The Wagner School places the gift in its ________ fund. 2. When the W
Answer Preview: 1. c. per…

, Chapter: 4 -Problem: 25 >> Youth For America had annual total costs of $800,000 at a volume of 2,000 volunteers. The fixed costs for the year were $400,000. 1. What are the total variable costs for the year? 2. What would the total costs be if the volume increased by 10 percent?
Answer Preview: 1. $800,000-$400,000 …

, Chapter: 6 -Problem: 11 >> Initial offerings of bonds occur in a(n) __________ while resale of bonds occurs in a(n) __________.
Answer Preview: primary m…

, Chapter: 9 -Problem: 18 >> What requirements must be met to record an asset?
Answer Preview: Assets are recognized when three condi…

, Chapter: 2 -Problem: 18 >> Accrual budgets plan for expenses for supplies when ________, while cash budgets plan for the expense when ________. (choose from below) 1. They are ordered 2. They are delivered to the organization 3. They are paid for 4. They are consumed 5. It depends of the type of expense.
Answer Preview: 4…

, Chapter: 6 -Problem: 12 >> Interest payments on bonds that make periodic interest payments are calculated by dividing the __________ by the number of __________ and multiplying by __________ of the bond.
Answer Preview: coupon rate, …

, Chapter: 3 -Problem: 11 >> Describe zero-based budgeting.
Answer Preview: zero-based budgeting entails a new way of measuring the eff…

, Chapter: 4 -Problem: 17 >> Select the best choice from the following to answer questions 1 and 2. 1. An increase in service volume will have the following effects: a. Increase unit variable cost and decrease unit fixed cost b. Unit variable cost remains constant and unit fixed cost remains constant  c. Decrease unit variable cost and unit fixed cost remains constant  d. Unit variable cost remains constant and unit fixed cos
Answer Preview: 1. d. Unit variabl…

, Chapter: 4 -Problem: 27 >> Mike Shiau is the finance director for faculty research at Big and Prestigious University (BPU). The research division has an administrative staff that is responsible for managing the administrative aspects of all of BPU’s research grants. Faculty research is carried out in a dedicated research building that is divided into 20 specialized laboratories. Grants are expected to pay for a share of the
Answer Preview: a. Direct faculty researcher, research assistants, laborat…

, Chapter: 12 -Problem: 7 >> Marloweville, with 20,000 residents, is deciding how to finance the construction of a new municipal stadium that will enhance both recreation and tourism in the area. The construction cost of the stadium is $10,000,000. By law, all proceeds from debt issuance are placed in Marloweville’s Capital Projects Fund, and all capital expenditures are made using this fund. 1. Show how Marloweville would re
Answer Preview: 1. 2. 3. d. $300,000 Assets Cash Capital Pr…

, Chapter: 3 -Problem: 14 >> Many managers simply average historical data to get a forecast of future results. Is that approach adequate?
Answer Preview: No, There may be t…

, Chapter: 4 -Problem: 15 >> Consider the cost of service delivery for a public service organization. Match the correct term with its definition below. a. Average cost 257 4-15. b. Full cost c. Marginal cost 1. The direct cost and the indirect cost of service delivery equals its_________________. 2. The total cost of service delivery divided by the total units of service delivered equals its _________________. 3. The cost of
Answer Preview: 1. Full Cos…

, Chapter: 9 -Problem: 23 >> For each of the transactions below, record whether it would result in an increase or decrease in assets and/or liabilities. An organization: 1. Purchases supplies with cash. 2. Purchases supplies on account. 3. Takes out a loan. 4. Repays loan principal. 5. Receives payment on a pledge. 6. Makes a payment on an amount it owes. 7. Prepays for insurance. 8. Pays employee wages that have been earned.
Answer Preview: Transaction 1. Purchases supplies with cash. 2. Purchases suppl…

, Chapter: 9 -Problem: 21 >> What is meant by double-entry accounting?
Answer Preview: It is impossible for an event to affect only one account …

, Chapter: 7 -Problem: 20 >> Accounts receivable represent.a. Amounts owed by the organization to outsiders b. Amounts owed to the organization by outsiders c. An operating expense d. A possible line item on an operating budget
Answer Preview: b. Amount…

, Chapter: 5 -Problem: 10 >> What are the problems with the payback method?
Answer Preview: The objection to the method i…

, Chapter: 5 -Problem: 27 >> The internal rate of return is the discount rate that sets the _________ value of the _________ equal to the _________ value of the _________.
Answer Preview: present …

, Chapter: 9 -Problem: 16 >> Distinguish between the Titanic and a sinking fund.
Answer Preview: The Titanic is a boat that sank. Sinking fun…

, Chapter: 4 -Problem: 14 >> Marginal costs are not equal to variable costs when (indicate all that apply) a. The time frame for a decision is more than 1 year b. There is a change in fixed costs c. There is excess capacity d. Some costs are outside an organizational unit making the decision
Answer Preview: b. Ther…

, Chapter: 7 -Problem: 25 >> Amounts that an organization owes to its suppliers, but has not yet paid, are referred to as a. Accounts receivable b. Bad debts c. Accounts payable d. Accrued expenses.
Answer Preview: c. A…

, Chapter: 7 -Problem: 22 >> An accounts receivable aging schedule shows the _________ and _________ of an organization’s accounts receivable that have been outstanding for less than 30 days, 31–60 days, 61–90 days, and so on.
Answer Preview: Doll…

, Chapter: 5 -Problem: 2 >> Do capital budgets have any impact on operating budgets?
Answer Preview: Yes, Approved items from the capi…

, Chapter: 11 -Problem: 15 >> The Abby Arboretum (AA) is a not-for-profit organization that has several programs, such as gardening, grade-school education, environmental efforts, and a reforestation program. It draws many volunteers for its efforts. Indicate which, if any, of the following activities should be recorded as donated services. a. An architect drew up blueprints for a new greenhouse free of charge. AA would have h
Answer Preview: a. Yes, because it is specialized and …

, Chapter: 2 -Problem: 25 >> Select from the choices below to answer the following questions: a. Increase b. Decrease c. stay the same d. cannot tell from the information given 1. If the amount of uncollectible school taxes increases, the mill rate that citizens must pay on their school taxes will _________. 2. If the value of taxable properties rises from $300 million to $310 million and the amount that the town needs to
Answer Preview: Solution. 1. If the amount of uncollectible school taxe…

, Chapter: 6 -Problem: 13 >> The Town of Hill Valley is issuing a 30-year bond with a face value of $50,000,000 and a stated annual interest rate of 4 percent. The town will make interest payments twice a year. 1. Calculate the semiannual interest payment. 2. Calculate how much Hill Valley will receive from the bond offering under the following conditions: a. Market interest rates remain unchanged at the time of the offering.
Answer Preview: 1. Given: - stated annual interest rate (APR) = 4% - face value = $50,000,000 - length of loan = 30 …

, Chapter: 12 -Problem: 8 >> The South City Golf Course purchased a new golf cart for $18,000 in cash at the beginning of the fiscal year. South City accounts for the golf course using an enterprise fund. It plans on using straight-line depreciation for its capital assets. South City expects the cart to last 6 years and have no salvage value. 1. At the time of the cart purchase, the accountant for South City Golf Course will:
Answer Preview: 1. b. decrease cash by $18,000 …

, Chapter: 5 -Problem: 26 >> If compounding changes from quarterly to weekly for a $100 investment earning 8 percent per annum, the future value at the end of 5 years will (select from the answers below) a. Increase b. Decrease c. Stay the same d. Cannot tell from the information given
Answer Preview: a.…

, Chapter: 8 -Problem: 9 >> Which of the following is not a component of an internal control system: a. adequate documentation  b. audit trail  c. separation of duties  d. none of the above are components of internal control e. a, b, and c are all components of an internal control system
Answer Preview: d. none of …

, Chapter: 3 -Problem: 16 >> A carefully done computerized analysis should be sufficient for most forecasts. True or false? Why?
Answer Preview: False, Computers fail to take into account what …

, Chapter: 5 -Problem: 21 >> Solve the following using a calculator or spreadsheet. a. If she can invest money at 5 percent compounded quarterly, how much must she invest today? b. Suppose that Morduch believes that Meals for the Homeless can put aside only $37,500 today to buy the new van in 3 years. However, she thinks that she can invest the money at 7.20 percent compounded monthly. Determine if she will have the $50,000 s
Answer Preview: a. A. Spread Sheet Solution B. Financial Calculator Solution b. A. Spreadsheet Solution B. Fin…

, Chapter: 3 -Problem: 7 >> What are the two main categories of functional budgets? Why do you think this might be a useful way to budget?
Answer Preview: Program services and supporting services. It …

, Chapter: 3 -Problem: 20 >> 1. If your boss, the town’s chief financial officer, told you that the town expected tax revenues to be 22 percent lower than last year and asked you to prepare decision packages to justify all of the town’s discretionary programs, you would use a(n) ____________ budget. 2. To test the sensitivity of your operating expenses to changes in the number of campers coming to Camp Summertime Fun this sum
Answer Preview: 1 . If your boss , the town s chief financial officer , told you that the town expected tax r…

, Chapter: 6 -Problem: 4 >> What are government bonds.
Answer Preview: Governments issue bonds that are backed by the …

, Chapter: 8 -Problem: 16 >> What is the essential issue on which flexible budget variance analysis is based?
Answer Preview: The amount of resources consumed will vary with the level of workloa…

, Chapter: 4 -Problem: 24 >> Answer the following questions about the break-even analysis. 1. New City Day Care Center operates from Monday to Friday. It has fixed expenses of $5,000 per week and charges each child who attends the program $15 per day. It costs the Center $5 per day for supplies and snacks for each child. How many children must come to the Center each day for it to break even? 2. If the Center gets a contribut
Answer Preview: 1. BEQ = FC/(VR VC) = ($…

, Chapter: 3 -Problem: 25 >> The Free Health Care Center (FH) charges each patient $5.50 (not quite free after all, but pretty close). Due to rising costs, the center has been forced to consider raising this charge to $6.00 or $6.50. If the price goes up, fewer people will come to the center for care. At a price of $6.00 only 18,000 patients are expected, and at a price of $6.50 there will likely be only 16,000 patients. Prep
Answer Preview: Thorough explanation. The Free Health Care Center (FH) currently charges each patient $5 50. However…

, Chapter: 4 -Problem: 46 >> Millbridge Township provides a variety of summer recreation alternatives. You can belong to the town pool, play tennis, or play golf. Summer passes allowing residents to use these facilities are sold each year. Twenty-five percent of the season passes that are purchased are golf passes, 35 percent are for tennis, and the rest are for the pool. The golf passes are $30, the tennis passes are $50, an
Answer Preview: (Break-Even AnalysisMultiple Products…

, Chapter: 6 -Problem: 17 >> Fifteen years ago, The Food Pantry bought a new building for $600,000. It borrowed $500,000 on a 30-year mortgage with a 6 percent fixed rate and monthly payments. The current outstanding balance on the mortgage is $355,000. Today, the organization can get a 15-year fixed-rate mortgage with an interest rate of 4.32 percent. The mortgage would require monthly payments in arrears. It will cost The F
Answer Preview: A. Spreadsheet Solution B. Financial Calculator Solution 10,000 x 7% = 700 x 1/2 year = 350 inte…

, Chapter: 4 -Problem: 18 >> To break even, an organization’s _________________ must equal its _________________. a. Total revenues, fixed costs b. Total revenues, variable costs c. Total revenues, total costs d. Total revenues, total support
Answer Preview: c. Tot…

, Chapter: 11 -Problem: 16 >> Indicate whether each of the following actions would result in a change in unrestricted, temporarily restricted, or permanently restricted net assets this year: a. A donor gives the organization a cash contribution to be used for expanding the organization’s food pantry program. b. The organization earns an unrealized gain on its permanent endowment. c. A donor pledges money to the organization bu
Answer Preview: a. Temporarily restricted …

, Chapter: 7 -Problem: 27 >> Name two tools (techniques) that can be used by an organization to manage its accounts receivable.
Answer Preview: Any two of the following are accep…

, Chapter: 6 -Problem: 9 >> If interest rates rise, the prices for outstanding bonds will (Choose one of the answers below.) a. Fall b. Rise c. Stay the same.
Answer Preview: a…

, Chapter: 8 -Problem: 33 >> Pam Crawford is the vice president of the HMO of Millbridge. The organization bills and collects premiums from employers for their employees who are enrolled as members of the HMO. In turn, it receives bills from hospitals and physicians for care they have given to its members. Pam is in charge of optimizing the use of resources and safeguarding the resources of the HMO. She knows that if anything
Answer Preview: TO: Pam Crawford FROM: [Your name] DATE: [Date] RE: Enhancing internal controls Dear Pam, Thank you …

, Chapter: 2 -Problem: 23 >> Traditionally, property tax revenues have been received in cash according to the following schedule: 40 percent in the first month following the billing date 20 percent in second month 10 percent in third month 10 percent in fourth month 8 percent in fifth month 5 percent in sixth month 7 percent are not collected  The state collects the sales tax revenues and will transfer cash to the city on Mar
Answer Preview: To create a cash budget for Roche City, you will need to follow the steps below: Determine the cash …

, Chapter: 10 -Problem: 18 >> The Science Road Show (SRS) is a not-for-profit organization that puts on traveling science demonstrations throughout the state. SRS operates on a September 1–August 31 fiscal year. The organization began FY 2018 with the following account balances:  SRS recorded the following financial events during the 2018 fiscal year:1. On September 1, SRS took out a $200,000 bank loan with an annual interes
Answer Preview: As a language model AI, I can provide the financial statements based on the information you provided. But to fully analyze and understand the financia…

, Chapter: 2 -Problem: 21 >> The town prepares its operating budget following the unique rules of modified accrual accounting employed by governments. Under these rules expenses are recognized when the town receives goods or services and becomes legally obligated to pay for them. It does not matter if they have been used or not. Also, cash inflows or proceeds from long-term loans are treated as if they were revenues. Using th
Answer Preview: To prepare an operating budget and a cash budget for Middleboro Township for the fourth quarter, you …

, Chapter: 4 -Problem: 13 >> Relevant costs are those that change because of the action being considered or undertaken by an organization. Which of the following factors should be considered when determining which costs are relevant in a decision to expand an after-school reading program for neighborhood children? a. The mission of the organization  b. The number of children that will be added to the program  c. The impact of
Answer Preview: b. The number of children …

, Chapter: 7 -Problem: 24 >> Bills that have been sent out by an organization but not yet collected are referred to as _________.
Answer Preview: acc…

, Chapter: 8 -Problem: 21 >> Will all line items have a volume variance?
Answer Preview: No, volume variances arise because …

, Chapter: 8 -Problem: 5 >> What is an internal control system?
Answer Preview: This is a system designed to prote…

, Chapter: 10 -Problem: 14 >> For each of the transactions below, record whether it would result in an increase or decrease in assets, liabilities, and/or net assets. An organization: 1. Earns revenue. 2. Receives a donor pledge. 3. Purchases supplies with cash. 4. Purchases supplies on account. 5. Takes out a loan. 6. Repays loan principal. 7. Receives payment on a pledge. 8. Makes a payment on an amount it owes. 9. Prepays f
Answer Preview: Transaction 1. Earns revenue. 2. Receives a donor pledge. 3. Purcha…

, Chapter: 5 -Problem: 23 >> At any interest rate above 0 percent, the future value of an investment will always be a. Less than the original amount invested b. Greater than the original amount invested c. Equal to the original amount invested
Answer Preview: b. Greater than the …

, Chapter: 4 -Problem: 49 >> Millbridge Ambulance Service has been considering consolidating its three locations into just two locations. The location they are considering closing currently costs $155,000 to operate. If the location is closed, the ambulances from that location would be moved to the other two locations. The savings from the closure would be partially offset by increased expenses at the two remaining locations.
Answer Preview: Keep the location open. There will be savings of only $35,000 and they will lose a $40,000 grant, …

, Chapter: 9 -Problem: 17 >> Why must financial disclosure include the cost, accumulated depreciation, and net value of fixed assets?
Answer Preview: The details of total cost and accu…

, Chapter: 9 -Problem: 11 >> Do CPAs allow errors to exist in audited financial statements?
Answer Preview: CPAs try to find and eliminate all mater…

, Chapter: 5 -Problem: 22 >> Choose from the methods listed below to answer the following questions. a. Net present value b. Net present cost c. Annualized cost d. Break-even e. Internal rate of return f. Cost-benefit analysis 1. The Public Water Works Department (PWW) is trying to decide whether to replace the crumbling water pipes below Metro City’s streets with plastic pipe that it believes will last 30 years or the mo
Answer Preview: 1. c. Annualized Cost 2. a. Net …

, Chapter: 4 -Problem: 23 >> Camp Hole-in-the-Wall provides children who have chronic medical conditions with 1-week summer vacations. The Camp owns a 500-acre facility in the Berkshire Mountains, where it brings the kids. The annual depreciation expense for the camp is $100,000. The Camp hires one counselor for every 10 campers. It also employs a full-time doctor, a nurse, two cooks, and a camp director. It costs $75 per wee
Answer Preview: a. Fixed: depreciation, doctor, nurse, coo…

, Chapter: 7 -Problem: 23 >> Working capital management focuses on making sure that an organization has sufficient resources to operate a. In accordance with its mission b. Over the next year c. Efficiently d. Over the expected life of the organization.
Answer Preview: b. O…

, Chapter: 4 -Problem: 16 >> Select the best available answer to fill the blank. 1. We Give Gifts Foundation’s accounting manager prepares reports about the foundation’s grant making, investments, and general administrative activities. The cost of her salary and fringe benefits would be included as part of the _________________ of its investment management activity. a. Direct cost b. Indirect cost c. Variable cost 2. We Give
Answer Preview: 1. b. I…

, Chapter: 9 -Problem: 24 >> Shanna Engel started up a new nonprofit organization in 2017 named Concern for Animal Shelter and Habitats (CASH). The organization places homeless animals in permanent homes. Transactions during the first month of operations were as follows: 1. Borrowed $50,000 from a local bank. No interest is due on the loan during the first month, and the principal does not have to be paid back for 2 years. 2.
Answer Preview: Date 1. 12. 3. 4. 5. Assets (4) Cash + $50,000 No trans…

, Chapter: 4 -Problem: 38 >> Answer the following questions about break-even analysis. 1. Millbridge Day Care Center operates from Monday to Friday. It has fixed expenses of $18,000 per week and charges each child who attends the program $300 per week. It costs the center $30 per week for supplies and snacks for each child. How many children have to come to the Center each day for it to break even? 2. If the Center gets a ren
Answer Preview: 1. BEQ = FC/(VR …

, Chapter: 12 -Problem: 6 >> Please use the following choices to fill in the blanks below: a. modified accrual  b. accrual  c. cash 1. Under the _______ method of accounting, expenses are recognized when assets are used up, while under the _______ method, expenditures are recognized when the asset is purchased. 2. The local government’s water enterprise fund utilizes the _______ method of accounting because it is run like a b
Answer Preview: 1. b. accr…

, Chapter: 3 -Problem: 5 >> The advantage of a centralized approach to budgeting is that staff has more involvement in setting organizational priorities. True or false?
Answer Preview: F…

, Chapter: 3 -Problem: 21 >> Select from the following to answer questions 1 through 4. a. Zero-based b. Formula c. Incremental d. Accrual e. Capital f. Flexible
Answer Preview: a. ZERO-BAS…

, Chapter: 7 -Problem: 9 >> What is meant by a risk/return trade-off?
Answer Preview: In general, marketable securities have a risk/return …

, Chapter: 8 -Problem: 31 >> Your investigation determines that in August he treated 7 type X patients with an average cost of $4,300 and 11 type Y patients with an average cost of $9,000. In September, he treated 8 type X patients and 10 type Y patients. Costs in September for his patients were $5,000 for type X and $8,700 for type Y. Although the August cost for type X patients had risen, Eger points out that costs for the
Answer Preview: Given that Dr. Eger treated 7 type X patients with an average cost of $4,300 and 11 type Y patients …

, Chapter: 4 -Problem: 26 >> Doctors Without Borders (DWB) operates health programs around the world. It has a central staff of 100 people who administer its worldwide programs. DWB’s central operation buys and distributes all of the supplies used in its various country operations. DWB’s country director for Afghanistan and her staff run 20 clinics around the country. At the clinic level, doctors and nurses hired under 2-year
Answer Preview: a. Direct : Country staff, …

, Chapter: 3 -Problem: 22 >> 1. If your boss told you to test this year’s budget for the impact of changes in expected client volume on your budgeted revenue and expenses, you would use a(n) ____________ budget. 2. ____________ budgets focus on proposed investments in valuable, long-lived resources. 3. Decision packages are normally associated with a(n) ____________ budget. 4. Operating budgets are normally done on a(n) _____
Answer Preview: 1 . If your boss told you to test this year s budg…

, Chapter: 5 -Problem: 25 >> If the net present value of the cash flows from an investment is greater than zero and you base your decision solely on financial considerations, you should _________ the investment. (Circle the correct answer.) a. Accept b. Reject c. Do nothing (not enough information) about
Answer Preview: a.…

, Chapter: 9 -Problem: 9 >> What major change has occurred regarding the GAAP of conservatism?
Answer Preview: Equity securities are now …

, Chapter: 8 -Problem: 11 >> How can outcomes be measured?
Answer Preview: Outcomes can be measured in te…

, Chapter: 8 -Problem: 23 >> Answer the following questions about variance analysis. 1. Variances are differences between ____________ and ____________ revenues or expenses. 2. The three factors involved in variance analysis are ____________, ____________ and ____________.
Answer Preview: 1. planned or budgeted (or …

, Chapter: 7 -Problem: 21 >> Short-term debt refers toa. Money that the organization has just borrowed b. Money that must be repaid at some time in the next 12 months c. Money that has to be repaid at some time after the next 12 monthsd. A form of debt that only requires the repayment of interest during the coming year.
Answer Preview: b Money th…

, Chapter: 6 -Problem: 10 >> Coupon bonds generally pay interest __________ and principal at the __________.
Answer Preview: twice each…

, Chapter: 15 -Problem: 8 >> What are some examples of debt burden measures?
Answer Preview: To focus on longer term solvency of governme…

, Chapter: 3 -Problem: 19 >> Select from the following to answer questions 1 and 2. a. Zero-based b. Formula c. Incremental d. Accrual e. Capital f. Flexible
Answer Preview: a. Ze…

, Chapter: 4 -Problem: 20 >> Answer the following questions about costs. 1. Whether a cost is considered to be a direct or indirect cost depends on (select the best choice) a. The cost objective b. Who is doing the analysis c. The time frame for the analysis d. Whether costs are inside or outside an organizational unit e. the expected range of volume2. If you are trying to determine the cost of the third-grade classes in an e
Answer Preview: 1. a. The c…

, Chapter: 5 -Problem: 24 >> A stream of 60 monthly payments of $1,000 each is an example of a(n) _________.
Answer Preview: A…

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10 Reviews for Financial Management for Public, Health and Not-for-Profit Organizations Textbook Questions And Answers