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Return to course: Understanding Financial Statements
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Lesson 1 Quiz
Harbor Oak pays $7,800 in rent every month whether 50 or 60 children are enrolled. Rent is a:
*
Fixed cost
Variable cost
Classroom cost
Step-fixed cost
Food costs rise as more children enroll. Food is a:
*
Fixed cost
Variable cost
Overhead cost
Start-up cost
Tuition that families have been billed but have not yet paid is:
*
Accounts payable
Accounts receivable
Equity
Deferred revenue
Which of these is a classroom (direct) cost?
*
Infant lead teacher wages
Director salary
Rent
Bookkeeping fees
A nonprofit child care center should never show a surplus.
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True
False
Enrolling one more preschooler usually does not add a teacher until the room reaches its ratio. This makes teaching staff a:
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Variable cost
Step-fixed cost
Overhead cost
One-time cost
In a nonprofit's reports, the section a for-profit calls "equity" is called:
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Retained earnings
Net assets
Fund balance sheet
Owner's capital