If You Were a State or Local Official Interested in Maintaining

question 22

Multiple Choice

If you were a state or local official interested in maintaining as much control over a policy as possible, which grant program would you prefer?

• A)Block grant
• B)Categorical grant
• C)Revenue sharing
• D)Grant-in-aid

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Definitions:

Plant and Equipment

Plant and equipment are tangible assets used in the production or supply of goods and services, such as machinery, vehicles, and buildings, necessary for business operations.

Accumulated Depreciation

Sum of all depreciation expenses allocated to a fixed asset since it first became operational.

Mortgage Payable

A liability account showing amount owed on a mortgage.

Liquidity

A measure of the ease with which an asset can be converted into cash without significant loss in value.