Block Grants Are

question 127

Multiple Choice

Block grants are

• A) grants-in-aid that contain numerous, detailed provisions on how the states and local governments use the money.
• B) directives the national government issues to state and local governments without compensating them for complying.
• C) grants-in-aid from the national government that are general, contain minimal regulations, and give states and local governments considerable discretion on how the money should be used.
• D) All of the above

Learn how to prepare a planning budget based on projected activity levels.

Learn how to prepare a flexible budget based on actual activity levels.

Gain the ability to calculate and interpret variances from budget, both favorable and unfavorable.

Understand the impact of fixed and variable costs in budget preparation and variance analysis.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash, out of its profits or reserves.

Payable

Refers to an amount of money that a company owes to its creditors or suppliers, to be paid at a later date.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.

Indirect Method

Indirect Method is a way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions and changes in working capital.