During the Year, a State-Owned University Received a $5 Million

question 28

Multiple Choice

During the year, a state-owned university received a $5 million gift. The donor specified that the principal of the gift must be held intact for 3 years, but the earnings from the gift can be used to support technology improvements in the college of business. At the end of the 3 years, the donor together with the university president and the college dean will decide how the $5 million gift can be used. The university will report the gift in what type of fund?

• A) Permanent fund.
• B) Private-purpose trust fund.
• C) Plant fund.
• D) Special revenue fund

Explain the difference between a shift of the aggregate-demand curve and a movement along a given aggregate-demand curve.

Identify government policies that can shift aggregate demand and understand the role of government spending and taxation.

Describe what composes aggregate demand in an economy.

Discuss the concept of money as a veil in classical economics and its implications for economic analysis.

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Definitions:

Cash Flows from Operating Activities

The section of a company's cash flow statement that represents the amount of money a company brings in from its regular business activities.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, representing the asset's wear and tear, deterioration, or obsolescence.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, recorded in the cash flow statement.

Cash Dividends

Profits distributed by a corporation to its shareholders in the form of cash.