Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Busi 409 final exam
1. BUSI 409 Final Exam
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1) The terms accounting and bookkeeping are often used interchangeable;
however, the differences in meaning are significant.
2) An organization's executives set the tone for the office environment.
3) The statement of cash flows is a required statement that accompanies the
audit opinion, other financial statements, and footnotes as part of the annual
audit.
4) For smaller organizations, the basic Web site usually begins with material
already developed for a membership brochure, including the group's mission and
objectives.
5) Once a candidate has accepted a job offer, it should be confirmed by a letter
accurately restating the job offer, as the letter can be used in a court of law as an
official document.
6) Three touchstones determine when nonprofit revenues are subject to
taxation: (1) They result from a "trade or business," (2) they are 'regularly" carried
on, and (3) they are "unrelated" to the exempt purposes of the organization.
7) Although lawsuits have been thought to be a problem of the for-profit world,
nonprofits are covered by different laws.
8) Under regulations that became final in June 1999, nonprofit organizations
must make its annual tax return, including all attachments (except for the name
and address of any contributor to the organizations), its application for tax
exemption, and any relevant documents issued by the IRS, available to the public
on request.
9) An audit includes an opinion, a statement of financial position, a statement of
activities, a statement of cash flows, footnotes, and sometimes, a supplementary
schedule reporting results by natural accounts as well as by functional areas.
10) Because nonprofit organizations are frequently organized as "combinations"
of competing members, the first criterion for establishing illegal activity under the
Sherman Act is inherent in the nature of the organization.
11) An organization may be required to file IRS form 990-T, Exempt Organization
Business Income Tax Return, if it has $1,000 or more of gross income from an
2. unrelated business, such as advertising revenue or the sale of lists and labels to
for-profit organizations.
12) The statutes of each state are different, however, the legal counsel familiar
with the requirements of the state chosen as the state of incorporation should be
consulted to ensure conformance with the particular requirements of that
jurisdiction.
13) Nonprofit organizations should only report their results using functional
classifications.
14) When buying computer programs, nonprofits should observe the 80 percent
rule--if a program can meet 80 percent of software needs, buy it.
15) To make objective and fair comparisons, ask interviewees a different set of
questions that can help determine each candidate's job-related skills and
experience general intelligence and aptitude, attitudes and personality.
16) If an organization's gross receipts are in excess of $25,000 per year, IRS
form 990, Return of Organization Exempt from Income Tax, must be completed
and filed by the 15th day of the fifth month after year end.
17) In accrual basis accounting, revenue is recognized when received rather
than when earned, the expense is recognized when paid rather than when
incurred.
18) Finding and hiring staff starts with a clear, concise job description.
19) The measure of a successful organization is not the size of the staff it
supports or how well decorated the offices are, but whether the people,
equipment, and surroundings are the right ones to help move the organization
forward to achieve its strategic objectives and fulfill its mission.
20) Three fundamental documents serve as the basis for establishing and
operating a nonprofit organization: Articles of incorporation Bylaws IRS tax
exemption letter
21) A statement of financial position reports the assets and liabilities of an
organization at a particular point in time.
22) Articles of incorporation provide only a broad outline of the organization's
form, and the initial board of directors should quickly approve a set of bylaws that
supplement the articles by prescribing more detailed rules for governing the
organization.
23) Strictly speaking, a nonprofit organization must be incorporated.
3. 24) Nonprofit organizations formed for purely charitable or public interest
purposes qualify for tax exemption under the provisions of 401(k) of the IRS code.
25) Although the budget is often considered a working document, its purpose is
to make estimates of future revenues and expenses and thus to serve as a
management tool.