According to FASB standards, how are not-for-profit organizations distinguished from a business?
What will be an ideal response?
An organization that possess the following three characteristics are not-for-profit:
| 1. | Contributions of a significant amount of resources from resources providers who do |
| 2. | Operating purposes other than to provide goods or services at a profit. |
| 3. | Absence of ownership interests like those of business enterprises. |
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Which of the following is an example of a control environment deficiency?
a. A low level of control consciousness within the organization. b. An audit committee that does not have independent members. c. An audit committee that is not viewed as the client of the external auditor. d. All of the above.
According to the "do's" of question wording, a question should be:
A) focused B) grammatically simple C) brief D) crystal clear E) all of the above
There are four key characteristics of a strong and effective board member. Which one is not such a characteristic?
a. The majority of the board members are outside members b. The majority of the board members are large owners of stock in the firm c. The majority of the board members are also operational managers d. The majority of the board members are members of a limited number of other boards
If a firm uses the direct method for reporting operating activities on the statement of cash flows, it must present a separate schedule which reconciles net income to net cash from operating activities
Indicate whether the statement is true or false