Assessing requires evaluating whether the organization is financially strong or in jeopardy and looking at the liabilities as well as the revenue and expenses shown on the statement of activities.
A) profitability
B) asset management
C) liquidity
D) long-term solvency

Question

Quizplus · Accepted Answer

Assessing the organization's long-term solvency involves looking at its ability to meet its financial obligations in the long-term, including its liabilities and expenses. This is important for evaluating whether the organization is financially strong or in danger of insolvency.

Assessing Requires Evaluating Whether the Organization Is Financially Strong or in Jeopardy