$1)$ Which of the following is an advantage of a not$-$for$-$profit board establishing an audit committee?

A$)$ Is able to assist the board in reviewing the compensation paid to the senior executives.

B$)$ It can help the board fulfill its oversight responsibilities by working directly with the public accounting firm.

C$)$ It helps the board develop a succession plan for the CEO.

D$)$ It can assist the board in reviewing the budget for the next fiscal year.

$2)$ A nongovernmental tax$-$exempt organization must complete a Form $990$ and send it to the Internal Revenue Service:

A$)$ Only if they have unrelated business income.

B$)$ If they are not a religious organization, and have gross receipts of $$5,000$ or more each year.

C$)$ If they have gross receipts of $$1,000$ or more each year.

D$)$ Only if they are a private foundation, not a public charity.

$3)$ Which of the following is a reason why a not$-$for$-$profit organization might fail to qualify for tax$-$exempt status?

A$)$ It is operated primarily for the benefit of its members.

B$)$ Its officers are paid excessive wages.

C$)$ Its primary purpose is to promote the election of a senate candidate.

D$)$ It has unrelated business income.

$4)$ The income most likely to be considered unrelated business income of a human service organization that provides immunizations to children in the community is:

A$)$ Rental of extra space in the debt$-$financed building.

B$)$ Sale of sweatshirts with the organization's logo on it at a price above cost at the annual fundraiser.

C$)$ Interest and dividend income on investments.

D$)$ Gain on the sale of equipment no longer needed by the organization.