Final Exam Flashcards

1
Q

What is Stewardship?

A

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

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2
Q

What is fiduciary?

A

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

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3
Q

Local officers and responsibility

A

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

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4
Q

Three main factors that contribute to fraudulent activity

A

Opportunity, Rationalization, and Financial Preassure

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5
Q

Top three reasons fraud happens at church

A

Lack of segregation of duties, trust, and change

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6
Q

What is Internal Control?

A

Systematic measures instituted by an organization to:

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

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7
Q

Principles of internal control

A
  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
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8
Q

The collection - basic checkpoints

A
  1. receiving the collection
  2. counting the collection
  3. depositing the collection
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9
Q

What is money management?

A

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

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10
Q

Money management functions - Receiving

A

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

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11
Q

Money management functions - recording

A

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

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12
Q

Money management functions - budgeting

A

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

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13
Q

Money management functions - spending

A

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

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14
Q

What is net worth?

A

the sum of all you own minus all you owe

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15
Q

Why be a good steward?

A

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

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16
Q

Year round stewardship emphasis

A

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.

17
Q

What is a stewardship plan?

A

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

18
Q

Ten valuable steps for a stewardship plan

A
  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
19
Q

Fiscal Year

A

October 1 - September 30

20
Q

Week Period

A

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

21
Q

Code Structure

A
1-3 Company
4-8 Fund
9-11 Department
12-15 Object
16-18 Sub-code
22
Q

What is a fund?

A

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

23
Q

What is department?

A

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

24
Q

What does the first number of the object code mean?

A
1 - Assets
2 - Liabilities 
3 - Fund Balance
4, 5, 6 - Income
7, 8, 9 - Expenses
25
Q

What are the different types of income?

A

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

26
Q

What are the different types of expenses?

A

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

27
Q

Shelby Abbreviations

A
GL- General Ledger
AR - Accounts Receivable
AP - Accounts Payable
CN - Contributions
BR - Bank Reconciliation
FYE - Fiscal Year Ended
YTD - Year to Date
28
Q

Contributions

A

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

29
Q

What does accounts receivable include?

A

income received deposits

income earned but not received

30
Q

Accounts Payable - Description

A

Pay bills/process checks

record invoices due till payment

31
Q

General Ledger Module - Description

A

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

32
Q

What are two important financial statements found in the GL?

A

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

33
Q

What is a balance sheet?

A

A snapshot of financial position on a given date

34
Q

What is cash balance?

A

Funds available

35
Q

What is an income and expense statement?

A

records revenue and expenses over a specified period of time

36
Q

What is a budget?

A

An estimate of future financial income and outgo.

37
Q

what is cash flow?

A

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