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:

Spending Variance

The difference between the actual and budgeted amount of spending, indicating over or under spending.

Total Expenses

The sum of all expenses incurred by a business during a specified period, including cost of goods sold, operating expenses, and other charges.

Spending Variance

The difference between the actual amount of money spent and the budgeted amount in a given period.

Occupancy Costs

Expenses related to occupying a space, including rent, utilities, and other facility-related costs.