NLN Finance Unlocked Boost #1

First, let's remember what we talked about.

The goal of this quiz is not to test your knowledge, but rather to reinforce the most important pieces that you learned about nonprofit boards. If you don't answer a question correctly, don't worry. Read the correct answer and think about why how this applies to your board.

As always, if you have questions please get in touch with us: learning@washingtonnonprofits.org or (855) 299-2922.

QUESTION 1: A BALANCE SHEET might have which of these on it?
A)
Assets
B) Budget
C) Reserves
D) Liabilities
QUESTION 2: Accounting rules recently changed. Your balance sheet should now show your NET ASSETS divided into what two buckets?
A) Board reserve / all other funds
B) Without donor restriction / with donor restriction
C) Assets / liabilities
D) Cash / cash equivalents
QUESTION 3: Three of the following statements about an INCOME STATEMENT are true. Which ones?
A) It covers a period of time.
B) It typically includes your budget, your financial plan.
C) It shows your overall net worth.
D) It includes actuals, or true financial results.

It is important to understand the basics of Balance Sheets and Income Statements so that your board can make good decisions. Think about a decision that has come—or will soon be coming—in front of your board. What INFORMATION could you get from these financial statements that could INFORM YOUR DECISION?

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