Not-for-Profit Financial Reporting Quiz

<p>Generally Accepted Accounting Principles (GAAP) as outlined in the CPA Canada Handbook (B)</p> Signup and view all the answers

<p>When it receives more than $10,000 in revenue from a public source in a single financial year (B)</p> Signup and view all the answers

<p>6 months (D)</p> Signup and view all the answers

<p>A moderate level of assurance, providing some belief about the reasonableness of financial information (D)</p> Signup and view all the answers

<p>Soliciting corporations are required to submit their financial statements to Corporations Canada, while non-soliciting corporations are not. (C)</p> Signup and view all the answers

<p>They fulfill needs often not met by the profit-oriented sector. (A)</p> Signup and view all the answers

<p>Working for a private corporation that donates to NFPOs. (B)</p> Signup and view all the answers

<p>To be a person with a solid grasp of accounting and finance. (A)</p> Signup and view all the answers

<p>Focusing solely on internal audits rather than financial reporting to stakeholders. (B)</p> Signup and view all the answers

<p>Truthfulness and reliability. (D)</p> Signup and view all the answers

<p>Knowledge of the relevant accounting standards and how they apply to the specific NFP. (B)</p> Signup and view all the answers

<p>Examining records and approving financial statements by independent members (A)</p> Signup and view all the answers

<p>Filing annual returns with attached financial statements (C)</p> Signup and view all the answers

<p>They share a common interest in a purpose beyond self-interest. (A)</p> Signup and view all the answers

<p>A social service agency where members' involvement corresponds to the size of the board. (C)</p> Signup and view all the answers

<p>To define determine and define, the organization's purpose. (D)</p> Signup and view all the answers

<p>The articles of incorporation and bylaws. (C)</p> Signup and view all the answers

<p>To pool member resources to achieve better economies of scale. (D)</p> Signup and view all the answers

<p>To establish a credible organization and to allow for fundraising. (C)</p> Signup and view all the answers

<p>The original founders, and new members invited for their commitment. (C)</p> Signup and view all the answers

<p>The members of the NFPO. (B)</p> Signup and view all the answers

<p>To remember and differentiate between their two roles. (A)</p> Signup and view all the answers

<p>The NFPO members. (A)</p> Signup and view all the answers

<p>To guide 'how we do things'. (D)</p> Signup and view all the answers

<p>Financial audit policies. (A)</p> Signup and view all the answers

<p>To provide commitment statements directing the NFPO. (A)</p> Signup and view all the answers

<p>Focusing on the present including clients and processes. (A)</p> Signup and view all the answers

<p>The reason for the NFPO's existence. (C)</p> Signup and view all the answers

<p>If it was a past practice or tradition. (A)</p> Signup and view all the answers

<p>The executive director (C)</p> Signup and view all the answers

<p>Strategic planning (C)</p> Signup and view all the answers

<p>Who can sign checks and borrow on behalf of the organization (A)</p> Signup and view all the answers

<p>To control who can speak on behalf of the organization to ensure consistency and aligned messaging (D)</p> Signup and view all the answers

<p>The board chair or executive director (B)</p> Signup and view all the answers

<p>Formal review and a determination of authority to permit the variance (D)</p> Signup and view all the answers

<p>Ensuring equitable treatment of all employees (A)</p> Signup and view all the answers

<p>Because each NFPO is distinctive in size and function (C)</p> Signup and view all the answers

<p>Unrestricted funds allocation (D)</p> Signup and view all the answers

<p>Because revenue comes from contributors and is spent on different groups (B)</p> Signup and view all the answers

<p>To fund the building or acquisition of capital assets (D)</p> Signup and view all the answers

<p>A capital grant is for capital assets, while an operating grant is for general expenses. (C)</p> Signup and view all the answers

<p>To confirm the funds were used for the specific purposes as they were donated (A)</p> Signup and view all the answers

<p>By allocating resources based on priorities and demonstrating fiscal responsibility (A)</p> Signup and view all the answers

<p>Financial reporting controls (C)</p> Signup and view all the answers

<p>To restrict who can modify the IT system (C)</p> Signup and view all the answers

A review engagement is a type of assurance service where an accountant examines a company's financial statements to provide a limited level of assurance. It's less intensive than an audit but offers more confidence than a compilation engagement.

A compilation engagement is a basic assurance service where an accountant assists a company in preparing its financial statements but does not perform any audit or review procedures. It provides the least assurance.

An audit engagement is a comprehensive assurance service where an accountant examines a company's financial statements with the objective of expressing an opinion on their fairness.

A soliciting corporation is an NFPO that receives more than $10,000 in revenue from a public source in a single financial year.

A non-soliciting corporation is an NFPO that receives less than $10,000 in revenue from a public source in a single financial year.

The Canada Not-for-Profit Corporations Act (CNPCA) requires incorporated NFPOs to prepare financial statements in accordance with GAAP and provide them to members before their annual general meeting.

The financial statements of a soliciting corporation must be submitted to Corporations Canada within six months of the year end.

The financial statements of a non-soliciting corporation do not need to be submitted to Corporations Canada.

Individuals with a shared interest in a purpose beyond personal gain, forming the foundation of an NFPO.

The governing body of an NFPO, responsible for strategic direction and oversight.

Paid professionals who carry out the day-to-day operations of an NFPO, implementing the board's decisions.

Unpaid individuals who contribute their time and skills to support an NFPO's activities.

The core reason for an NFPO's existence, clearly stated in its governing documents and shaped by its members.

Formal documents that outline the fundamental rules and structure of an NFPO, approved by its members.

The ultimate authority in an NFPO, responsible for defining the purpose and amending the governing documents.

A visual representation of the hierarchical structure of an NFPO, showing the flow of accountability.

The not-for-profit (NFP) sector provides goods and services not typically available from the private, profit-making sector. These services are crucial for the well-being of Canadians.

Not-for-profit organizations offer educational programs, healthcare services, cultural activities, and more. They also focus on social, humanitarian, and spiritual values.

Accountants contribute to the NFP sector in various ways, from working directly for organizations to providing volunteer services.

Accountants in the NFP sector are seen as experts in financial matters. They help organizations understand accounting standards and navigate complex financial situations.

To be competent, accountants in the NFP sector need to understand and apply relevant accounting standards. They also have a responsibility to be truthful and reliable in their communications.

Accountants in the NFP sector play a crucial role in gathering information, analyzing it, communicating findings to stakeholders, and providing guidance on reporting requirements.

Operational policies that govern financial management, including budgeting, financial controls and how variances are addressed.

They set the rules for preparing, approving, and monitoring the organization's budget.

They outline procedures for managing financial risks and ensuring compliance with regulations.

They regulate internal operations, such as program development, personnel practices, and risk mitigation.

Policies that guide communication, advocacy, and public relations, including who can speak on behalf of the organization.

The process of adapting governance policies to the specific needs and characteristics of an organization.

Policies should be customized to the size, nature, and specific context of each organization.

These policies play a crucial role in ensuring effective governance, accountability, and transparency.

Policies that outline the NFPO's core purpose, vision, mission, and values. They guide the organization's overall direction and priorities.

Policies that govern how the board operates and makes decisions. They ensure effective board governance and accountability.

Policies that define the relationship between the board and staff, including roles, responsibilities, and communication.

Policies that guide the daily operations of the NFPO, such as finance, human resources, program delivery, and fundraising.

Policies that cover communication strategies, advocacy efforts, and public image management. They ensure the NFPO's message is effectively shared.

A brief statement that outlines the NFPO's long-term aspirations and goals. It inspires and guides the organization's vision.

A statement that describes the NFPO's current purpose and how it contributes to its mission. It focuses on what the organization does and for whom.

Measures taken to ensure financial resources are used effectively and efficiently.

Spending is monitored directly in NFPOs as revenue is often from donors, not recurring sales.

Restricted funds can only be used for specific purposes, like building projects.

A detailed plan outlining income and expected expenses for a specific period.

A good budget process helps to align spending with the organization's goals.

Budgeting helps to demonstrate responsible financial management to stakeholders.

Controls that limit who can access and change the IT systems.

Access controls limit who can access specific parts of the IT system.