Which of the Following Classifications of Net Position Likely Would

question 21

Multiple Choice

Which of the following classifications of net position likely would be found on the statement of net position of a governmental university that reports as a business-type activity?

• A) Temporarily restricted net position.
• B) Unrestricted net position.
• C) Permanently restricted net position.
• D) Nonspendable net position.

Recognize the distinct impacts of operating and financial leverage on business risk.

Explain how leverage affects a firm’s stock price and capital structure optimization.

Analyze the implications of financial theories, including Modigliani and Miller’s propositions, on firm value and capital structure.

Understand different organizational types and their characteristics, including faith-affiliated versus other forms.

---

Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee without controlling those policies.

Common Stock

Equity owning in a firm that grants shareholders voting rights and a share in the company's profits, typically through dividends.

Database

A structured set of data held in a computer, especially one that is accessible in various ways, used for storing and managing information digitally.