Test Your Knowledge 123 rTest Your Knowledge al ts al 1. Why should interested parties thor- oughly review an organization's finan- cial statements? 2. Why are financial statements usually presented with more than 1 year of data? Assets are listed in order of liquidity. What does that mean? 3. 4. What does accounts receivable, net 5. For a for-profit corporation, what are 6. For a not-for-profit organization, what 7. Why might the excess of revenues over mean? the main categories of owners' equity? are the two classes of owners' equity? expenses be of particular interest to a financial statement user, rather than the increase in net assets without donor restrictions? 8. What does the statement of cash flows tell us that looking at the change in cash on the balance sheet does not? Should each of the sections of the cash flow statement show an increase in cash 9. for a healthy organization