Practice Test Geeks(CCAP) Certified Community Action Professional Practice Test
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Nonprofit Financial Management Flashcards

7 cards from real CCAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Nonprofit Financial Management flashcards as text

  1. Which financial statement shows a nonprofit's assets, liabilities, and net assets at a specific point in time?

    Answer: Statement of Financial Position

    The Statement of Financial Position (equivalent to a balance sheet) reports assets, liabilities, and net assets at a specific date.

  2. Under FASB ASC 958, net assets without donor restrictions are best described as:

    Answer: Resources the board can use for any mission-related purpose

    Net assets without donor restrictions are resources not subject to donor-imposed stipulations and available for board-directed purposes.

  3. A community action agency receives a $50,000 grant that must be spent on housing services by December 31. This is classified as:

    Answer: Net assets with donor restrictions

    Funds with time or purpose restrictions imposed by donors are classified as net assets with donor restrictions under FASB ASC 958.

  4. Which ratio measures how many months an organization could operate using only its liquid unrestricted net assets?

    Answer: Months of liquid unrestricted net assets (LUNA)

    LUNA measures organizational liquidity by dividing liquid unrestricted net assets by average monthly expenses.

  5. The primary purpose of an operating reserve policy is to:

    Answer: Ensure adequate funds to sustain operations during revenue shortfalls

    An operating reserve policy ensures the organization has a financial cushion to maintain operations during unexpected revenue gaps.

  6. Which expense allocation method is most appropriate for a program manager who splits time across three CSBG-funded programs?

    Answer: Time and effort reporting to document actual time spent

    Time and effort reporting documents actual hours worked per program and is the federally required method for allocating personnel costs under federal grants.

  7. Under OMB Uniform Guidance, what is the threshold that triggers a Single Audit requirement for a nonprofit?

    Answer: $750,000 in federal expenditures

    Nonprofits that expend $750,000 or more in federal awards in a fiscal year are subject to the Single Audit requirement under 2 CFR Part 200.

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  1. communityactionpartnership.com — Test delivery, eligibility, exam dates, exam format, registration deadline, retake policy, time limit, fees, renewal, exam information · verified Oct 2026