The primary goal of not-for-profit corporations generally is expressed in a mission statement that often involves service to the community. True False On the balance sheet, how does fixed asset depreciation get accounted for in a given year? Short term assets (e.g. cash) decrease Owners' equityet assets decrease Long-term liabilities (e.g. long term debt) increase Short-term liabilities (e.g. accounts payable) increase Which of the following equations best describes the accounting identity for a for profit/investor-owned organization? Assets = Liabilities + Owners' Equity Assets = Owners' Equity + Depreciation Liabilities = Owners' Equity + Assets Assets = Liabilities - Owners' Equity Under current law, not-for-profit corporations are not allowed to make a financial profit from operations. True False Which of the following statements concerning net income versus cash flow is most correct? Net income can be converted into a rough measure of cash flow by adding nonoperating income Net income is a rough measure of a business's cash flow Net income can be converted into a rough measure of cash flow by adding noncash expenses like depreciation Net income can be converted into a rough measure of cash flow by adding the provision for bad debts Which of the following statements about the legal forms of for-profit business organization is most correct? Hybrid forms of business cannot be used by healthcare organizations Corporations have the advantage of limited liability to owners Corporations are easier to form than are proprietorships Partnerships are applicable when there are more than three owners, while proprietorships are used when there are three or fewer owners Chatham Home Health Services has a profit margin of 15 percent on sales of $20,000,000. If the firm has debt of $7,500,000 and total assets of $22,500,000, what is Grady's return on assets (ROA)? 8.0% 13.3% 5.3% 10.9%