Final Exam

Question 1

What is Stewardship?

Answer 1

The careful and responsible management of something entrusted to one’s care. -Webster

Question 2

What is fiduciary?

Answer 2

The one who is charged with a confidence or trust as it relates to the management of someone else’s money.

Question 3

Local officers and responsibility

Answer 3

The delegation of authority to local officers or employees does not lessen or relive the corps commanding officers of ultimate responsibility.

Question 4

Three main factors that contribute to fraudulent activity

Answer 4

Opportunity, Rationalization, and Financial Preassure

Question 5

Top three reasons fraud happens at church

Answer 5

Lack of segregation of duties, trust, and change

Question 6

What is Internal Control?

Answer 6

Systematic measures instituted by an organization to:

to make sure the assets and records of the business are free from theft and manipulation

Question 7

Principles of internal control

Answer 7

1. establishment of responsibility
2. segregation of duties
3. documentation of procedures
4. physical, mechanical, and electronic controls
5. independent internal verification
6. human resource controls

Question 8

The collection - basic checkpoints

Answer 8

1. receiving the collection
2. counting the collection
3. depositing the collection

Question 9

What is money management?

Answer 9

The art and science of developing and carrying out a spending plan.

Question 10

Money management functions - Receiving

Answer 10

actual physical receiving. counting, safeguarding, preparing for deposit.

Question 11

Money management functions - recording

Answer 11

creating records showing source and amount of income, and purpose and amount of expenditure

Question 12

Money management functions - budgeting

Answer 12

making decisions about what to do with available income and developing a plan to implement those decisions

Question 13

Money management functions - spending

Answer 13

the “outgo” side of money management just as receiving in the “income” side

Question 14

What is net worth?

Answer 14

the sum of all you own minus all you owe

Question 15

Why be a good steward?

Answer 15

stewardship enables the church to perform its ministries of worship, evangelism, fellowship, nurture, and service.

Question 16

Year round stewardship emphasis

Answer 16

people no longer give blindly. need to appeal to the compassion of people ant their need for meaning. stewardship is a way of growing in Christ.

Question 17

What is a stewardship plan?

Answer 17

is an organized program to educate the people in the church to spiritual faithfulness

Question 18

Ten valuable steps for a stewardship plan

Answer 18

1. establish a realistic budget
2. appeal to the six pockets of giving
3. distribute numbered offering envelopes
4. mail giving statements
5. don’t “take” the offering; “receive” it.
6. teach children the importance of giving
7. don’t ask for money in meetings that have been designed to reach the unchurched
8. overcome the fear of preaching about money
9. plan a stewardship month
10. build stewardship planning calendar

Question 19

Fiscal Year

Answer 19

October 1 - September 30

Question 20

Week Period

Answer 20

Week ends on Sunday. Final week of month extends to last day of month

Question 21

Code Structure

Answer 21

1-3 Company
4-8 Fund
9-11 Department
12-15 Object
16-18 Sub-code

Question 22

What is a fund?

Answer 22

designates a different set of books within a company. i.e. general operating, board designated, FEMA, ETC.

Question 23

What is department?

Answer 23

is a section within a fund used to designate a group of accounts. i.e. management and general, fundraising, social services, etc.

Question 24

What does the first number of the object code mean?

Answer 24

1 - Assets
2 - Liabilities 
3 - Fund Balance
4, 5, 6 - Income
7, 8, 9 - Expenses

Question 25

What are the different types of income?

Answer 25

4 - Donations 5 - Public and government funds 6 -Inter-company, investments and miscellaneous funds

Question 26

What are the different types of expenses?

Answer 26

7 - Personnel 8 - Operating Expenses 9 - Inter-company and miscellaneous expense

Question 27

Shelby Abbreviations

Answer 27

``` GL- General Ledger AR - Accounts Receivable AP - Accounts Payable CN - Contributions BR - Bank Reconciliation FYE - Fiscal Year Ended YTD - Year to Date ```

Question 28

Contributions

Answer 28

equips you to record giving history and associate it with pledges, purposes and membership information. This not only allows you to prepare giving statements for contributor tax records, but also enables you to track giving trends

Question 29

What does accounts receivable include?

Answer 29

income received deposits | income earned but not received

Question 30

Accounts Payable - Description

Answer 30

Pay bills/process checks | record invoices due till payment

Question 31

General Ledger Module - Description

Answer 31

This application is the backbone of the accounting system. all financial modules integrate with it. stored data provides reports useful for budgeting

Question 32

What are two important financial statements found in the GL?

Answer 32

Balance sheet, income & expense sheet (budgeted financial statement)

Question 33

What is a balance sheet?

Answer 33

A snapshot of financial position on a given date

Question 34

What is cash balance?

Answer 34

Funds available

Question 35

What is an income and expense statement?

Answer 35

records revenue and expenses over a specified period of time

Question 36

What is a budget?

Answer 36

An estimate of future financial income and outgo.

Question 37

what is cash flow?

Answer 37

describes how and when money comes into the church and is spent