SQCS Definition

Bookmark and Share

SQCS is Statement on Quality Control Standards.

Learn new Accounting Terms

RESERVE is an accounting entry that properly reflects contingent liabilities.

EXCESS OF REVENUE OVER EXPENSES in the not-for-profit sector. There is a common misconception that not-for-profit organizations are not allowed to have a financial cushion as they are 'not-for-profit'. In this context it is useful to remember that not-for-profit organizations are also 'not-for-loss' organizations. An organization cannot sustain losses over the long term without ceasing to operate or going bankrupt. Excess of revenue over expenses is the planned financial position that there will always be a sufficient amount of funds on hand to continue to run the not-for-profit entity for some period without additional funding; usually 3-4 months.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.