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: email@example.com or (855) 299-2922. QUESTION 1: A BALANCE SHEET might have which of these on it?A) AssetsB) BudgetC) ReservesD) Liabilities A B C D HintYour Balance Sheet is a snapshot that shows your financial position 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 fundsB) Without donor restriction / with donor restrictionC) Assets / liabilitiesD) Cash / cash equivalents A B C D HintYou can eliminate board reserves because that is a board determination, not a legally binding financial issue. 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. A B C D 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? HintBoards can be more strategic in their decision-making when they have a bigger financial picture to examine. In a board meeting when you are asked whether you should spend money on X or Y, you can span the lens backward to see how that decision fits into the on-going work of the organization and whether you have assets in the bank to cover any short-term loss. You can track money over time to see trends. What additional thoughts do you have about your financial policies? Your Name Your Email Address Time is Up!