Which financial document should an EO prepare to show a chapter's current financial status?

• A. A fundraising flyer.
• B. A budget report or financial statement (income statement and balance sheet) for the chapter.
• C. A bank loan application.
• D. An event schedule.

Answer: (B)

This question tests presenting a clear picture of the chapter’s finances. A budget report or financial statement—a combo of an income statement and a balance sheet—provides that snapshot. The income statement shows money coming in and going out over a period, revealing how well the chapter is performing financially. The balance sheet lists what the chapter owns (assets) and what it owes (liabilities) at a specific moment, plus the resulting equity. Together, they show current liquidity, profitability, and overall financial health, which is exactly what an executive officer needs to communicate.

A fundraising flyer is geared toward raising money or participation, not reporting financial status. A bank loan application focuses on securing funds and usually involves projected figures, not the current reality. An event schedule covers timing and planning, not finances. So the best document to prepare is the budget report or financial statement for the chapter.