As an accountant for a large nonprofit organization, Carter knows that

QUESTION

As an accountant for a large nonprofit organization, Carter knows that one of his chief responsibilities is to provide financial transparency. What is meant by financial transparency?

A) giving stakeholders an accurate picture of what is happening to their money
B) determining whether an organization is staying within its budget
C) evaluating a client’s financial records to determine their fairness and reliability
D) investigating suspected crimes within the field of accounting
E) providing accounting services to clients on a fee basis

ANSWER

Answer: A
Explanation: A) The most important task for nonprofit accountants is not only to determine if the organization is staying within its budget but also to provide financial transparency—that is, give contributors a clear picture of where their money is going.