var theTitle = ""
var theIntro = ""
var initialMessage = ""
// ----Do not change this next line-------------------------------------
var theTest = new hTest(theTitle, "test", theIntro, initialMessage)
// ----Change this next line to whatever you want-----------------------
theTest.messageHint = ""
// ---------------------------------------------------------------------
// ----Here you start adding the various kinds of questions-------------
// ----BE SURE TO CONSECUTIVELY NUMBER EACH QUESTION (var questions[the number])--
var question1 = new hTrueFalse()
question1.intro = "\"Charity\" is a synonym for \"not-for-profit.\""
question1.messageRight = "Correct. Not-for-profit organizations may apply for charitable registration through the Charities Directorate of the Canada Revenue Agency. Charitable registration provides exemption from income tax and the ability to issue charitable donation receipts, which provide a tax credit to donors."
question1.messageWrong = "Incorrect. Not-for-profit organizations may apply for charitable registration through the Charities Directorate of the Canada Revenue Agency. Charitable registration provides exemption from income tax and the ability to issue charitable donation receipts, which provide a tax credit to donors."
question1.possibleScore = 1
question1.rightAnswer = false
question1.initialAnswer = null
question1.questionText = ""
theTest.addQuestion(question1)
var question2 = new hTrueFalse()
question2.intro = "The promotion of art is recognized as an acceptable charitable purpose in Canada."
question2.messageRight = "Correct. The Canada Revenue Agency’s Charities Directorate has the following to say about art: \"The promotion of art, per se, is not a charitable purpose. However, the courts have held that education in the arts, either in the form of the training of individuals or the education of the public through the raising of its aesthetic tastes by the direct exhibition/presentation of artistic works, is a charitable purpose.\""
question2.messageWrong = "Incorrect. The Canada Revenue Agency’s Charities Directorate has the following to say about art: \"The promotion of art, per se, is not a charitable purpose. However, the courts have held that education in the arts, either in the form of the training of individuals or the education of the public through the raising of its aesthetic tastes by the direct exhibition/presentation of artistic works, is a charitable purpose.\""
question2.possibleScore = 1
question2.rightAnswer = false
question2.initialAnswer = null
question2.questionText = ""
theTest.addQuestion(question2)
var question3 = new hTrueFalse()
question3.intro = "Managers of small organizations can increase the trustworthiness of their financial records, both paper documentation and electronic accounts, by placing a single reliable individual in charge of all aspects of accounting."
question3.messageRight = "Correct. If more than one person is involved in financial tasks, reliability is deemed to improve since they would have to collude in any wrongdoing. In addition, colleagues can check each other's work for accuracy."
question3.messageWrong = "Incorrect. If more than one person is involved in financial tasks, reliability is deemed to improve since they would have to collude in any wrongdoing. In addition, colleagues can check each other's work for accuracy."
question3.possibleScore = 1
question3.rightAnswer = false
question3.initialAnswer = null
question3.questionText = ""
theTest.addQuestion(question3)
var question4 = new hTrueFalse()
question4.intro = "When audited statements are described as \"qualified,\" this means that the auditor is qualified by the Canadian Institute of Chartered Accountants to perform audits for arts organizations (or any other specialized sector of the economy)."
question4.messageRight = "Correct. A \"qualified\" opinion indicates that the financial statements cannot be verified to generally accepted auditing standards, or that they have not been prepared in accordance with generally accepted accounting principles."
question4.messageWrong = "Incorrect. A \"qualified\" opinion indicates that the financial statements cannot be verified to generally accepted auditing standards, or that they have not been prepared in accordance with generally accepted accounting principles."
question4.possibleScore = 1
question4.rightAnswer = false
question4.initialAnswer = null
question4.questionText = ""
theTest.addQuestion(question4)
var question5 = new hTrueFalse()
question5.intro = "The Canada Revenue Agency, the federal department responsible for taxation, requires that a company’s corporate filing be received within 180 days of its fiscal year-end."
question5.messageRight = "Correct. Corporations have 6 months to file. Not-for-profit corporations must prepare a T2 income tax return (or a T2 Short where no taxes are due). Charities must file a T3010 charities return."
question5.messageWrong = "Incorrect. Corporations have 6 months to file. Not-for-profit corporations must prepare a T2 income tax return (or a T2 Short where no taxes are due). Charities must file a T3010 charities return."
question5.possibleScore = 1
question5.rightAnswer = true
question5.initialAnswer = null
question5.questionText = ""
theTest.addQuestion(question5)
var question6 = new hTrueFalse()
question6.intro = "Journals provide a day-by-day record of transactions."
question6.messageRight = "Correct. Journals (French root \"jour\" = \"day\") record financial activity on a daily basis. A company may use a number of different journals to record specific types of transactions, e.g. Sales, Purchases, Payroll."
question6.messageWrong = "Incorrect. Journals (French root \"jour\" = \"day\") record financial activity on a daily basis. A company may use a number of different journals to record specific types of transactions, e.g. Sales, Purchases, Payroll."
question6.possibleScore = 1
question6.rightAnswer = true
question6.initialAnswer = null
question6.questionText = ""
theTest.addQuestion(question6)
var question7 = new hTrueFalse()
question7.intro = "Information on the Income Statement (or Statement of Operations, or Statement of Revenues & Expenses) is cumulative over the course of each year."
question7.messageRight = "Correct. Each year’s statement starts at zero, and tallies the growth in revenues and expenses as the year proceeds. At year-end, the closing entry transfers the net result of the year – surplus or deficit – to the Equity section of the Balance Sheet."
question7.messageWrong = "Incorrect. Each year’s statement starts at zero, and tallies the growth in revenues and expenses as the year proceeds. At year-end, the closing entry transfers the net result of the year – surplus or deficit – to the Equity section of the Balance Sheet."
question7.possibleScore = 1
question7.rightAnswer = true
question7.initialAnswer = null
question7.questionText = ""
theTest.addQuestion(question7)
var question8 = new hTrueFalse()
question8.intro = "The Trial Balance is designed to demonstrate that the books are in balance by proving that debits are equal to credits."
question8.messageRight = "Correct. In manual bookkeeping systems, preparation of a Trial Balance was an essential verification step to prove that debits equal credits. Most accounting software packages incorporate a trial balance report to prove that the books are in balance."
question8.messageWrong = "Incorrect. In manual bookkeeping systems, preparation of a Trial Balance was an essential verification step to prove that debits equal credits. Most accounting software packages incorporate a trial balance report to prove that the books are in balance."
question8.possibleScore = 1
question8.rightAnswer = true
question8.initialAnswer = null
question8.questionText = ""
theTest.addQuestion(question8)
var question9 = new hTrueFalse()
question9.intro = "The Balance Sheet balances if Revenues are equal to Expenses, and the company breaks even."
question9.messageRight = "Correct. The basic accounting equation, demonstrated by the Balance Sheet, is Assets = Liabilities + Equity. Revenues and Expenses appear on the Income Statement. If Revenue = Expense, the company neither makes nor loses money, and then breaks even."
question9.messageWrong = "Incorrect. The basic accounting equation, demonstrated by the Balance Sheet, is Assets = Liabilities + Equity. Revenues and Expenses appear on the Income Statement. If Revenue = Expense, the company neither makes nor loses money, and then breaks even."
question9.possibleScore = 1
question9.rightAnswer = false
question9.initialAnswer = null
question9.questionText = ""
theTest.addQuestion(question9)
var question10 = new hTrueFalse()
question10.intro = "The bookkeeper posted a $100 debit to the bank account, a $67 credit to Raffle Ticket Sales and a $25 credit to Individual Donations. The Trial Balance will not balance."
question10.messageRight = "Correct. For every journal entry, debits must equal credits. If one journal entry is out of balance, the Trial Balance will also be out of balance. This entry has a $100 debit and $92 in credits. The process of reconciling the books to the monthly bank statement will prove whether or not the bank “side” of the entry is correct."
question10.messageWrong = "Incorrect. For every journal entry, debits must equal credits. If one journal entry is out of balance, the Trial Balance will also be out of balance. This entry has a $100 debit and $92 in credits. The process of reconciling the books to the monthly bank statement will prove whether or not the bank “side” of the entry is correct."
question10.possibleScore = 1
question10.rightAnswer = true
question10.initialAnswer = null
question10.questionText = ""
theTest.addQuestion(question10)
var question11 = new hTrueFalse()
question11.intro = "Financial planning is an annual activity best accomplished in one focused period around major government grant application deadlines."
question11.messageRight = "Correct. An \"all-nighter\" might get the job done in time for funding deadlines, but companies stand to benefit much more from a year-round process of planning, implementation, analysis, review and re-planning as needed."
question11.messageWrong = "Incorrect. An \"all-nighter\" might get the job done in time for funding deadlines, but companies stand to benefit much more from a year-round process of planning, implementation, analysis, review and re-planning as needed."
question11.possibleScore = 1
question11.rightAnswer = false
question11.initialAnswer = null
question11.questionText = ""
theTest.addQuestion(question11)
var question12 = new hTrueFalse()
question12.intro = "For virtually every organization, financial planning cycles overlap from one year to the next."
question12.messageRight = "Correct. Planning for a year of artistic programming may begin months or even years ahead of \"opening night,\" and the final financial wrap-up may not occur till months afterwards. Thus, it is common for arts organizations to be managing multiple financial planning cycles at any given time."
question12.messageWrong = "Incorrect. Planning for a year of artistic programming may begin months or even years ahead of \"opening night,\" and the final financial wrap-up may not occur till months afterwards. Thus, it is common for arts organizations to be managing multiple financial planning cycles at any given time."
question12.possibleScore = 1
question12.rightAnswer = true
question12.initialAnswer = null
question12.questionText = ""
theTest.addQuestion(question12)
var question13 = new hTrueFalse()
question13.intro = "For efficiency, you should budget using the same categories as your general ledger."
question13.messageRight = "Correct. The general ledger, from which financial statements are prepared, contains the accounting results of the company’s activities. If a company creates its budget and records its actuals in the same format, it is easier to compare the plan to the results, and to use this information for analysis, planning and control."
question13.messageWrong = "Incorrect. The general ledger, from which financial statements are prepared, contains the accounting results of the company’s activities. If a company creates its budget and records its actuals in the same format, it is easier to compare the plan to the results, and to use this information for analysis, planning and control."
question13.possibleScore = 1
question13.rightAnswer = true
question13.initialAnswer = null
question13.questionText = ""
theTest.addQuestion(question13)
var question14 = new hTrueFalse()
question14.intro = "It is incorrect to include overhead costs in project budgets."
question14.messageRight = "Correct. A project budget may contain only that project’s direct costs and revenues. It is also valid to include that project’s fair share of the company’s operating overhead – e.g. use of office supplies and equipment, insurance coverage, etc. A manager can decide whether to do so based on who needs to use the budget document, and for what purpose."
question14.messageWrong = "Incorrect. A project budget may contain only that project’s direct costs and revenues. It is also valid to include that project’s fair share of the company’s operating overhead – e.g. use of office supplies and equipment, insurance coverage, etc. A manager can decide whether to do so based on who needs to use the budget document, and for what purpose."
question14.possibleScore = 1
question14.rightAnswer = false
question14.initialAnswer = null
question14.questionText = ""
theTest.addQuestion(question14)
var question15 = new hTrueFalse()
question15.intro = "One of the typical financial planning challenges for arts managers is a preponderance of hard costs and soft revenues."
question15.messageRight = "Correct. Hard costs – over which managers have limited flexibility or discretion – generally include staffing and facility costs, often arts organizations’ most significant expense items. Soft revenues – which tend to be less predictable – include most fundraising and sales (admissions, memberships, etc.). Having to cover relatively inflexible commitments out of revenues that are not assured can pose significant planning challenges."
question15.messageWrong = "Incorrect. Hard costs – over which managers have limited flexibility or discretion – generally include staffing and facility costs, often arts organizations’ most significant expense items. Soft revenues – which tend to be less predictable – include most fundraising and sales (admissions, memberships, etc.). Having to cover relatively inflexible commitments out of revenues that are not assured can pose significant planning challenges."
question15.possibleScore = 1
question15.rightAnswer = true
question15.initialAnswer = null
question15.questionText = ""
theTest.addQuestion(question15)
var question16 = new hTrueFalse()
question16.intro = "Spending money to make money is not permitted in the not-for-profit sector."
question16.messageRight = "Correct. Not-for-profit organizations are allowed to make money – i.e. a surplus – as long as it’s kept within the company and used in support of the mandate. Managers should thus consider opportunities to spend judiciously in order to make money for their organizations."
question16.messageWrong = "Incorrect. Not-for-profit organizations are allowed to make money – i.e. a surplus – as long as it’s kept within the company and used in support of the mandate. Managers should thus consider opportunities to spend judiciously in order to make money for their organizations."
question16.possibleScore = 1
question16.rightAnswer = false
question16.initialAnswer = null
question16.questionText = ""
theTest.addQuestion(question16)
var question17 = new hTrueFalse()
question17.intro = "In a cashflow projection, cash-in can derive from many sources, of which revenues are just one type."
question17.messageRight = "Correct. A cashflow projection considers only cash items – items that will clear through the bank during the current period. Current year revenues typically provide the bulk of cash-in, but other sources include maturing investments, borrowing, receivables collected from previous years, and revenues received ahead of time for future projects."
question17.messageWrong = "Incorrect. A cashflow projection considers only cash items – items that will clear through the bank during the current period. Current year revenues typically provide the bulk of cash-in, but other sources include maturing investments, borrowing, receivables collected from previous years, and revenues received ahead of time for future projects."
question17.possibleScore = 1
question17.rightAnswer = true
question17.initialAnswer = null
question17.questionText = ""
theTest.addQuestion(question17)
var question18 = new hTrueFalse()
question18.intro = "Cashflow planning is all about timing."
question18.messageRight = "Correct. A budget document shows the expected outcome of a project or a year of operations. A cashflow document breaks the budget down by time period – typically by month – and incorporates other sources of cash-in and cash-out to show how the organization will manage its money to achieve the projected outcome."
question18.messageWrong = "Incorrect. A budget document shows the expected outcome of a project or a year of operations. A cashflow document breaks the budget down by time period – typically by month – and incorporates other sources of cash-in and cash-out to show how the organization will manage its money to achieve the projected outcome."
question18.possibleScore = 1
question18.rightAnswer = true
question18.initialAnswer = null
question18.questionText = ""
theTest.addQuestion(question18)
var question19 = new hTrueFalse()
question19.intro = "ABC Gallery pays their curator $31,500 and their part-time administrative assistant $19,250. If their total budget is $145,500, salary expense is 40% of total budget."
question19.messageRight = "Correct. (19,250 + 31,500) / 145,500 = 34.9%"
question19.messageWrong = "Incorrect. (19,250 + 31,500) / 145,500 = 34.9%"
question19.possibleScore = 1
question19.rightAnswer = false
question19.initialAnswer = null
question19.questionText = ""
theTest.addQuestion(question19)
var question20 = new hTrueFalse()
question20.intro = "The extent to which a company’s current ratio is under 100% indicates their degree of operating efficiency. The closer to 0%, the more efficiently they are operating."
question20.messageRight = "Correct. The current ratio is calculated by dividing current assets by current liabilities. If the current ratio is 100%, the company’s current assets cover all of its upcoming obligations. The closer to 0% the ratio, the less able the company to pay its debts. A current ratio in excess of 100% indicates that the company has more money than it needs to cover its current obligations."
question20.messageWrong = "Incorrect. The current ratio is calculated by dividing current assets by current liabilities. If the current ratio is 100%, the company’s current assets cover all of its upcoming obligations. The closer to 0% the ratio, the less able the company to pay its debts. A current ratio in excess of 100% indicates that the company has more money than it needs to cover its current obligations."
question20.possibleScore = 1
question20.rightAnswer = false
question20.initialAnswer = null
question20.questionText = ""
theTest.addQuestion(question20)
theTest.make()