According to Statement of Financial Accounting Standards 117,the Statement of Financial

question 51

Multiple Choice

According to Statement of Financial Accounting Standards 117,the statement of financial position of a private university should report the excess of the university's assets over its liabilities as:

• A)fund balance.
• B)unrestricted and restricted fund balance.
• C)retained earnings.
• D)unrestricted,temporarily restricted,and permanently restricted net assets.

Recognize the legal outcomes of dishonored drafts and the implications of "without recourse" endorsements.

Understand the legal requirements and implications of accepting drafts.

Grasp the correct procedures for endorsing checks and the effects of endorsement orders on negotiability.

Learn the types of endorsements and their legal consequences.

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Definitions:

Outstanding Shares

The total number of shares of stock that are currently owned by all shareholders of a company, including shares held by institutional investors and restricted shares.

Cost of Debt

The effective rate that a company pays on its current debt, including loans and bonds.

Repurchasing Stock

When a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

All Equity Firm

A company that finances all of its operations, investments, and assets through stock equity rather than taking on any debt.