Use the Following Information to Answer Questions

question 28

Multiple Choice

Use the following information to answer Questions
The City received $200,000 to help maintain a local art museum that is owned and operated by a not-for-profit organization.During the year the City transferred net earnings of $20,000 to the appropriate entity/fund.
-The $20,000 transfer would be reported by the fund that made the transfer as a an

• A)Transfer out.
• B)Expenditure.
• C)Deduction from Net Assets-Benefits.
• D)Expense.

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Definitions:

Mental Activity

Any cognitive process that involves thinking, reasoning, problem-solving, decision-making, or the processing of information.

Availability Heuristic

A cognitive shortcut that depends on the first examples that spring to mind when considering a particular subject, idea, approach, or choice.

Confirmation Bias

The disposition to seek, grasp, esteem, and recount information that confirms existing preconceptions or theories.

Belief Perseverance

The phenomenon where people hold onto their beliefs even when faced with evidence that contradicts or disproves them.