Non-Profit Bookkeeping Skills Assessment by Chickadee Nonprofit Solutions, Inc.

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Your Name* This field is required.

First Name

Last Name

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Email* This field is required.

example@example.com

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Who asked you to complete this assessment?If you're filling out this form as part of a job application for a not-for-profit organization, please indicate the name of the employer and the position you're applying for. Otherwise, you can leave this blank.

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Do you regularly use Quickbooks Online?This will help to calibrate your answers regarding QBO-specific questions!

YESNO

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(Optional) What is your level of English language fluency?If English is not your first language, we encourage you to let us know. This will help us calibrate your test results.

Native or Bilingual Proficiency - I am fluent in English

Full Professional English - advanced mastery of English in business and social communication, both written & spoken, and can discuss a wide range of topics

Professional Working English - I can communicate comfortably with clients and participate in team meetings; I can receive complex written or verbal instructions

Limited Working English - I can participate in basic social conversations and understand simple written or verbal instructions

Beginner (Elementary English) - I am just starting to learn English

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This questionnaire is designed to assess your existing knowledge base as a non-profit bookkeeper, and to identify strengths as well as areas for further training.

It covers several key knowledge areas for a full-cycle bookkeeper at a Canadian non-profit.

There are 27 questions in total, with approximately 5 questions for each of the following topic areas:

Core Accounting Concepts
Non-Profit Accounting Concepts
Accounting Terminology & Reporting (specifically in English)
Numerical Data Manipulation in Software (QBO, Excel)
Workflows, Internal Controls and Compliance

You are not expected to have all the answers as the assessment is designed to be challenging!

In some cases, the questions may be specific to certain software that you may not regularly use - that's ok, you can either guess or skip these questions.

You may use a calculator.

It takes most applicants between 15-45 minutes to complete but if you need longer, that's okay. There is no time limit. However, please complete this assessment in one sitting.

Remember to read each question carefully.

If you have any feedback (e.g. questions that are not clear) please let us know.

Thank you!

Nat Marshik, CPB, CNAP

Founder & CEO, Chickadee Nonprofit Solutions, Inc.

For questions: careers@chickadeenonprofit.ca

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*Tip: use the calculator below if you need to (just type into the box to see the calculator). You can jump back to this page, or to a past or future question, by clicking the progress bar at the bottom of your screen.

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You enter a Sales Receipt for $105 in your accounting software. It includes $5 of GST collected. What will the journal for this transaction look like?

Credit Revenue $100, Credit GST Payable $5, Debit Cash $105

Debit Revenue $100, Credit GST Payable $5, Credit Undeposited Funds $100

Credit Revenue $105, Debit Cash $100, Debit GST Payable $5

Debit GST Receivable $5, Credit Revenue $105, Debit Cash $105

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Your books are kept on Accrual basis. Your employees' hours worked in the last week of the fiscal year will not be paid to them until the first week of the new fiscal year. What should you do?

Enter a Journal Entry debiting Wages Expense and crediting Wages Payable

Add a Note in your financial statements describing the details of hours worked

Record the wages expense in the new year, in the period when they are paid

Enter a Bill on the last day of the year, showing the total payment that is due

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A Salary Advance paid to an employee should be recorded as...

An Asset

A Liability

A Contingent Liability

An Expense

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A Clearing Account is a Bank-type account, which may be used for....

Reconciling transactions made through a third party merchant (e.g. Stripe)

Holding uncategorized transactions for management review

A flow-through account for complex payments like refunds or bounced cheques

All of the above

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What do Retained Earnings tell us?

The accumulated profits or losses from all years of operation

The distributions that have been paid out to the shareholders

The total sales from all years of operations

The net earnings for the current year

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Non-profits may design their annual budget with varying levels of detail. Which of the following budgets is NOT a type you can enter into Quickbooks?

Budget by Account, Funder, and Vendor

Budget by Account, Program, and Month

Budget by Account, Funder, and Month

Budget by Account only

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Many grants include a percentage for "admin/operations", sometimes called an Admin Allocation or Admin Offset. This amount is best described as...

The portion of the grant that can be used to cover indirect costs

Taxable earnings to the non-profit

The portion of the grant that can be kept regardless of program delivery

A fee charged by the non-profit for its services

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In 2020, your organization received $10,000 in restricted funding, for an on-going annual program. There are no time restrictions, but you can only spend it on eligible program costs. In 2020, you only spent $8,000 of this grant. At the end of the year, what should you do with the remaining $2,000?

Record it as Deferred Revenue and recognize the income in the following fiscal year

Throw a party for your staff and Board to celebrate

Record it as a Contingent Liability & return it to the funder the following year

Record the $2,000 as an admin allocation to cover operating costs

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In 2022, your organization paid for insurance coverage that begins in 2023. What is the best way to record this transaction?

As a Prepaid Expense (Asset)

As an Accrued Expense (Liability)

As an Advance Payment (Liability)

As an Extraordinary Expense

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The CRA requires charities to report their annual expenses by Function on the T3010 Return. Board development costs would usually be reported under which official Function?

Management & Administration

Charitable Activities

Fundraising

Political Activities

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In a 3-line journal entry, your first line is a Credit of $2,000 and your second line is a Debit of $1,500. The third line will be:

The net of the first two lines

A balancing entry

A Debit of $500

All of the above

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Your Board wants to know if they've met their revenue targets for the year. Which is the best report to show them?

Budget vs. Actuals

Profit & Loss

Accounts Receivable Summary

Bank Reconciliation

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The Profit & Loss statement directly explains the month-over-month changes in WHICH part of the Balance Sheet?

Assets

Liabilities

Equity

Cash

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You have 3 General Ledger accounts: A, B, and C. Your starting balances in each account are: A = $50.00, B = ($25.00), C = $10.00. Accounts A and B are redundant, so your Finance Director tells you to "close account A and B and net them into account C". After you do this, what are the balances in each account?

Account A = $0.00. Account B = $0.00. Account C = $35.00.

Account A = $75. Account B = $0.00. Account C = ($25.00).

Account A = $0.00. Account B = $0.00. Account C = ($25.00).

Account A = $0.00. Account B = $0.00. Account C = $55.00.

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Your Board wants to know what the average monthly Operations (Admin) costs are for the organization. Which is the BEST report for you to analyze to get this number?

Profit & Loss by month, filtered by "Admin" class

Profit & Loss by month, with no filters

Profit & Loss by Class, for last month

Profit & Loss Comparative, Year over Year

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QBO: You have received a contract for a 3-year grant. It will be paid in instalments twice per year, starting this year. If you want to enter the entire grant contract into Quickbooks Online right away, how should you do it?

Create 2 Invoices and 4 Delayed Charges

Create one invoice for the entire grant amount

Create 6 invoices

Create one journal entry for the entire grant

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Excel: You've been asked to re-state your Profit & Loss statement, so it matches a funder's reporting categories. You pull up an Excel report containing your detailed Profit & Loss statement. Your Profit & Loss has 50 expense accounts but the funder only uses 10. The formula you are most likely to use in this scenario would be:

SUMIF

INDEX(MATCH)

INDIRECT

IFNA

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Which of the following is NOT true about a Pivot Table:

It's a good way to compare a Balance Sheet and a Profit & Loss statement

It's a tool in Excel or google sheets for summarizing data

You must have your data organized in rows with a single header

You can use it to summarize a list of accounting transactions

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You notice a negative balance in a column of the Accounts Payable Aging report in Quickbooks. There are various possible reasons for this. Which ONE of the following possible reasons would indicate that there's an actual error in the total balance of the Accounts Payable?

A bill was deleted or voided in Quickbooks after a payment was made

A payment was entered in Quickbooks, but the entry was not linked to the original bill

A payment was made early for a bill dated in the following month

The negative balance is from a credit memo issued by a vendor

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Your employee is paid a gross salary of $2,750 on a BI-WEEKLY basis. What is their annual salary?Tip: use a calculator!

71,500

66,000

33,000

It depends on their total deductions

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Charitable tax receipts can NOT be issued for:

Donations of services

Donations of cash

Donations of property

Donations of securities

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Which of the following is an example of a bad internal control?

The bookkeeper must sign all outgoing cheques

The mail is opened by the executive director and cheques are deposited by the bookkeeper

The bookkeeper sets up payroll, then the executive director approves it

The bank reconciliations are verified by the treasurer monthly

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Please put the following tasks into the best order for closing the books at month end.

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An employee is requesting a reimbursement for a company expense. Which of the following is NOT an acceptable source document?

A copy of the employee's bank statement

A printed point-of-sale itemized receipt from the vendor

A handwritten, itemized receipt signed by the payee

A PDF invoice from the vendor marked "paid"

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A CPA's job primary during an audit is to detect fraud.

Yes

No

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Which of the following may your CPA request from a charity during an audit? Select all that apply.Tip: this relates to CRA regulations for Keeping Books and Records!

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