Which of the following is/are true regarding the financing of a charitable organization?
A)may obtain some or all of its financing from donations (contributions)
B)does not issue common stock or other forms of shareholders' equity
C)does not have retained earnings
D)all of the above are true
E)none of the above are true

Question

Quizplus · Accepted Answer

A charitable organization typically relies on donations and contributions as a source of financing. They do not issue common stock or have shareholders, hence, they do not have shareholders' equity. Additionally, any earnings are put back into the organization's operations and cannot be retained in the form of retained earnings.

Which of the Following Is/are True Regarding the Financing of a Charitable