Term
| Even though the church is not a, it has a side |
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Definition
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Term
| Financial management, like all things we do, requires impeccable |
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Definition
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Term
| List three scripture passages used as references for God's Word speaking of Accounting |
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Definition
| Genesis 6, Genesis 14, Genesis 23 |
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Term
| Give an example of a person whose diligence and integrity allowed great promotion |
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Definition
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Term
| Our first test is our finances. |
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Term
| The day the senior pastor releases the financial reins is the day he can cast a greater vision |
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Term
| Whose responsibility is it to ensure the accuracy of records and that the accounts of the business are in place to comply with the law? |
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Definition
| Business owner (Senior Pastor) |
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Term
| List the four types of shareholders of the financial performance and position of the entity. |
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Definition
| Management, shareholders, investors, government, suppliers |
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Term
| Which definition goes with which definition? |
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Definition
| Bookkeeping - a record of day-to-day transaction, Financial accounting - turns the day-to-day records into standard reports. Management accounting - used to plan your business and develop meaningful reports. |
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Term
| List the three financial statements |
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Definition
| Balance sheet, income statement, cash-flow statement |
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Term
| A business can select from two accounting periods |
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Definition
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Term
| List the three conventions that ensure financial statements are clear and meaningful |
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Definition
| Consistent, Disclosure, Conservative |
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Term
| Of the common types of business structuring, it is most advantageous for the church to be filed as an LLC |
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Definition
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Term
| Name and describe 4 of the 8 accounting concepts |
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Definition
| Business entity - business accounts are distinct from owners and managers; Double entry - transaction has 2 aspects - debits/credits - sum will balance; Cost concept - transactions are recorded at actual cost; realisation concept - transaction only recorded when they occur. |
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Term
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Definition
| Natural positive balance of an account, as well as effect of transaction or occurrence |
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Term
| Fill in the blanks for the basic acct equation |
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Definition
| Assets = liabities+equities |
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Term
| Equity is also known as retained earnings or reserves |
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Definition
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Term
| if the net effect of the income statement is a profit, it will the equity amount |
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Definition
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Term
| The balance sheet is comprised of which three general ledger records |
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Definition
| Assets, liabilities and equity |
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Term
| If you start your business with a $20K bank loan your first journal entry will be a: |
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Definition
| Debit to cash; Credit to liability |
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Term
| Name 3 of the books of account |
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Definition
| Cash flow; Ledger; Petty Cash |
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Term
| Select the proper order at the end of an accounting period to get to financial statements |
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Definition
| Balance the ledger, generate trial balances, adjusting entries, financial statements |
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Term
| A capital expenditure is one in which the benefit of expenditure expires: |
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Definition
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Term
| Most businesses fail because of a lack of: |
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Definition
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Term
| You can earn a profit and still go bankrupt |
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Definition
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Term
| The complete listing of accounts found in the general ledger is called the |
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Definition
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Term
| A budget is a model of the future that should project what time frame? |
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Definition
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Term
| In the most basic definition, a budget is a |
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Definition
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Term
| Once an assumption is made, it should be carefully documented and checked multiple times |
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Definition
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Term
| Only the senior pastor and business manager should be involved in developing a budget |
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Definition
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Term
| When establishing base figures, it is important to use costs, not stated, cost rates |
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Definition
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Term
| What is the most critical aspect of a budget and why? |
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Definition
| Cash flow, otherwise you could overspend. |
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Term
| The period between the date an invoice is billed and when payment is due is called the |
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Definition
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Term
| Internal controls can be less emphasized in a church because Christians are more trustworthy |
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Definition
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Term
| Why is it important to never let your people count money alone |
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Definition
| Accountability; Mistrust; Temptation |
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Term
| Name one of the benefits and one of the challenges of in-house bookkeeping |
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Definition
| Up to date information on a daily basis. Cost - benefits, time off etc |
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Term
| Name one of the benefits and one of the challenges of outsourcing the bookkeeping |
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Definition
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Term
| The financial committee must be formally appointed by |
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Definition
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Term
| Bank accounts for the business should be reconciled once a |
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Definition
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Term
| The first rule of debtor management is to debtors |
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Definition
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Term
| The AGM is a legal requirement |
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Definition
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Term
| Operational budgets need to be submitted and approved on a basis |
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Definition
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Term
| CAPEX budgets need to be submitted and approved on a basis |
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Definition
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Term
| Priority for CAPEX spending should be applied to the main goal of the ministry |
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Definition
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Term
| Confidentiality is important only for the church staff |
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Definition
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Term
| Name the four types of ratios |
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Definition
| Liquidity; Leverage; Activity; Profitability |
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Term
| Match each ratio ro the category it corresponds to: A- Liquidity; B-Leverage; C-Activity; D- Profitability |
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Definition
| Interest Coverage Ratio - B; Net Operating Margin - D; Current Ratio - A; Average Collection Period - C; Return on Equity - D; Inventory Turnover - C; Gross Margin - D; Debt Equity - B; Quick Ratio - A; Return on Total Assets - D; Total Asset Turnover - C; Net Margin - D |
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Term
| Never use debt to finance |
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Definition
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Term
| Name 2 of the 3 evaluation methods for capital investment analysis |
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Definition
| Payback period; Net present value |
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Term
| When developing financial forecasts, the best strategy between 2 options is to select the one: |
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Definition
| with the highest net present value |
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Term
| The greatest benefit for an NPO is that the organisation may quality for tax under IRC section 501©(3) |
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Definition
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Term
| Churches and religious organisations are responsible for which employment taxes: |
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Definition
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