A Donor Provides a Large Cash Contribution That Is to Be

question 24

Multiple Choice

A donor provides a large cash contribution that is to be used for acquisition of a new building. Under FASB standards, how would this contribution be reported by a not-for-profit organization on its statement of cash flows?

• A) Operating activity.
• B) Investing activity.
• C) Financing activity.
• D) Capital and related financing activity.

Comprehend the process of avoiding double counting in GDP calculations.

Appreciate the impact of inventory changes on GDP contributions.

Recognize the role of non-market activities and various expenditures in GDP formulation.

Explore the dynamics of the circular flow model, focusing on the role of households and firms in the economy.

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Definitions:

Opinion Statements

Statements that express beliefs, judgments, or assessments rather than objective facts, often used in legal contexts to distinguish them from factual representations.

FTC Act

The Federal Trade Commission Act, a statute that established the Federal Trade Commission (FTC) and empowers it to regulate unfair or deceptive commercial practices.

Telemarketing Sales Rule

A federal regulation that sets standards for businesses using telemarketing strategies to ensure consumer protection.

Prize Promotion

A marketing strategy that offers awards or gifts to participants, often used to stimulate interest in a product or service.