Lesson 5 Quiz

From January 31 to March 31, operating cash fell from $111,465 to $79,606, even though the P&L showed a surplus in both February and March. Which balance sheet line explains most of the drop? *

Accounts Payable

Accounts Receivable – CCS

Prepaid Expenses

Note Payable

Playground & Outdoor Equipment rises from $16,000 (Oct 31) to $32,000 (Dec 31). Why isn't the $32,000 an expense on the P&L? *

It was paid with a grant

It is a long-term asset; its cost reaches the P&L through depreciation

It has not been paid yet

It is recorded as a liability

Nonprofit version: why does the $25,000 in net assets with donor restrictions at October 31 disappear by December 31? *

The grant was returned

The restriction was met when the playground was placed in service

The bookkeeper deleted it

It moved to accounts payable

At March 31, current assets are $226,672 and current liabilities are $42,197. The current ratio is about: *

1.5

3.0

5.4

0.2

Between March 31 and June 30, Accounts Receivable – CCS falls from $103,233 to $39,612 while operating cash rises from $79,606 to $152,553. What happened? *

The center cut expenses sharply

The State caught up on its delayed CCS payments, turning the receivable into cash

A loan was received

Families prepaid summer tuition

The year-to-date net income on the March 31 balance sheet ($99,216) should match: *

Total assets

Year-to-date net income on the P&L or Budget v. Actual

Cash on hand

Accounts receivable