Blue, Inc, Receives Its Support from the Following Sources

question 27

Multiple Choice

Blue, Inc., receives its support from the following sources. Which of the following statements is correct?

• A)Blue, Inc., is a private foundation because it satisfies the external support test and fails the internal support test.
• B)Blue, Inc., is not a private foundation because it fails both the internal and external support tests.
• C)Blue, Inc., is a private foundation because it satisfies both the external support test and the internal support test.
• D)Blue, Inc., is not a private foundation because it satisfies both the external support test and the internal support test.
• E)None of the statements is true.

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Definitions:

Stockholders' Equity

The amount of capital given to a company by its shareholders plus its retained earnings.

Intangible Assets

Non-physical assets such as patents, trademarks, and copyrights that have value to a business.

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into subcategories like current, long-term, property, plant, and equipment, to provide more detailed information.

Current Ratio

It's a financial ratio that calculates whether a corporation can cover its obligations that need to be paid within one year, by dividing the current assets by the current liabilities.