Chat with AIExam 12: Financial Management
What type of financial statement provides a snapshot of an organization's finances taken at a point in time?
(39) 
VerifiedC
A nonprofit organization depends on earned income as its only revenue source. According to Worth, this action is an example of a/an ______.
(34) VerifiedB
Explain the Uniform Prudent Management of Institutional Funds Act of 2006.
(36) 
Answered by Examlex AI CopilotThe Uniform Prudent Management of Institutional Funds Act (UPMIFA) of 2006 is a set of guidelines and regulations that govern the management and investment of endowment funds held by nonprofit institutions such as universities, hospitals, and charitable organizations.
UPMIFA provides a framework for the prudent management and investment of these funds, with a focus on long-term growth and sustainability. It outlines the responsibilities of the institution's governing board and investment managers in overseeing the funds, including the duty to exercise care, skill, and caution in making investment decisions.
One of the key principles of UPMIFA is the concept of spending from endowment funds in a manner that is consistent with the long-term preservation of the fund's purchasing power. This means that institutions must consider both the current and future needs of the organization when determining how much of the endowment's earnings can be spent.
UPMIFA also provides guidance on the delegation of investment management responsibilities, the diversification of investments, and the evaluation of investment performance. It aims to ensure that nonprofit institutions manage their endowment funds in a responsible and sustainable manner, with a focus on maximizing the benefits for both current and future beneficiaries.
Overall, UPMIFA serves to promote transparency, accountability, and good governance in the management of institutional funds, ultimately aiming to protect and grow the assets of nonprofit organizations for the benefit of their missions and the communities they serve.
A nonprofit organization offers its employees a health benefit option. This type of budget item is a/an ______ expense.
(34) A nonprofit accountant is writing a comment explaining extenuating circumstances related to data reported in a statement of activities. The accountant is completing which type of financial statement?
(39) Which type of financial statement summaries an organization's assets and liabilities?
(36) Compare and contrast statements of financial position, statements of activities, statements of cash flows, and statements of functional expenses.
(25) Which types of financial policies does Zietlow argue are doomed to fail?
(32) ______ refers to the method used to record financial transactions.
(24) What term describes the rules by which financial transactions are classified?
(43) Examine three separate budgets that nonprofit organizations should have and determine what each budget tracks.
(32) Depreciation refers to the differences between assets and liabilities.
(36) Bookkeeping is a method by which financial transactions are recorded.
(35) The Brown Foundation gave a local nonprofit organization a $1 million endowment. This action is an example of what type of revenue source?
(35) Accounting on a/an ______ basis takes money earned as well as obligations for expenditures not yet incurred.
(32) 
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