The President of a University Justifies a Proposed Tuition Increase

question 144

Multiple Choice

The president of a university justifies a proposed tuition increase to the students by describing how the projected revenue will not meet the costs associated with operating the university.The president is attempting to use _____ to convince the students that the tuition increase is necessary.

• A)heuristic persuasion
• B)systematic persuasion
• C)informational influence
• D)normative influence

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Definitions:

Indirect Method

A financial reporting approach where increases and decreases in inventory, accounts payable, and accounts receivable are reflected in cash from operating activities.

Operating Activities

Activities related to the day-to-day functioning of a business that are reflected in its cash flow from operations.

Net Income

The company's net income following the deduction of all costs and taxes from its total revenue.

Investing Activities

Transactions involving the acquisition or sale of long-term assets and investments, reflected in a company’s cash flow statement.