Certificate Program in Church Treasury

1. The financial statement that reports the sources (revenues) and expenses (uses) for a period of time such as a year is the:

a. Balance Sheet / Statement of Financial Position
b. Income Statement / Statement of Activities
c. Statement of Cash Flows

2. The financial statement that reports the assets, liabilities and net assets / fund balance on a specific date is the:

a. Balance Sheet / Statement of Financial Position
b. Income Statement / Statement of Activities
c. Statement of Cash Flows

3. Sources (Revenues) minus Uses (Expenses) equals:

a. Non-Taxable Income
b. Cash
c. Net Sources (Income) over / under Uses (Expenses)

4. Obligations (amounts owed) are reported on the Balance Sheet / Statement of Financial Position and are referred to as:

a. Assets
b. Uses (Expenses)
c. Liabilities

5. Assets are increased by:

a. Debit
b. Credit

6. Liabilities are increased by:

a. Debit
b. Credit

7. Net Assets can be either Donor Restricted or Unrestricted.

a. True
b. False

8. Which of the following is NOT a good Internal Control?

a. Segregation of Duties
b. Annual Audit
c. Pastor’s signature on all checks
d. All of the above

9. Non-profit organizations, such as churches, should never have a surplus at year end or they will jeopardize their non-profit status.

a. True
b. False

10. Which is NOT a part of the Fraud Triangle as an inducement to commit fraudulent activity?

a. Guilt
b. Pressure
c. Opportunity