A Private,not-For-Profit Hospital Received a Contribution of $40,000 on June

question 57

Multiple Choice

A private,not-for-profit hospital received a contribution of $40,000 on June 15,20X8.The donor restricted the contribution to funding research activities currently being performed by the hospital.For the year ended December 31,20X8,the hospital spent $30,000 of the contribution on research activities.The hospital expended the remaining $10,000 on research activities in January of 20X9.
-Refer to the above information.On the statement of cash flows prepared for the year ended December 31,20X8,the events described would increase net cash flows provided by:

• A)operating activities by $40,000.
• B)financing activities by $40,000.
• C)financing activities by $10,000.
• D)operating activities by $10,000.

---

Definitions:

Budget Constraint

A representation of all the combinations of goods and services a consumer can afford to buy with their income.

Nuts

Hard-shelled seeds of certain plants that are generally edible and nutritious, often eaten raw, roasted, or used as ingredients in cooking.

Berries

Small, pulpy, and often edible fruits, typically juicy, rounded, brightly colored, and seed-containing, consumed worldwide in various forms.

Utility Function

A mathematical representation of how individual preferences or consumption bundles yield levels of satisfaction or utility.