In 20X9,a Private Not-For-Profit Hospital Received a $200,000 Cash Contribution

question 97

Multiple Choice

In 20X9,a private not-for-profit hospital received a $200,000 cash contribution to its endowment fund.During the year,hospital administration invested $150,000 of the funds.Which of the following statements regarding the effect of these transactions on the preparation of the hospital's statement of cash flow is true?

• A)The $200,000 contribution will appear in the investing activities section of the cash flow statement as a cash inflow.
• B)The $200,000 contribution will appear in the financing activities section of the cash flow statement as a cash inflow.
• C)The $150,000 investment will appear in the investing activities section of the cash flow statement as a cash inflow.
• D)The $150,000 contribution will appear in the financing activities section of the cash flow statement as a cash inflow.

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Definitions:

Renin

Enzyme secreted by the juxtaglomerular apparatus that converts angiotensinogen to angiotensin I.

Kidney

A pair of bean-shaped organs that filter waste products from the blood and excrete them, along with water, as urine.

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Slippery fluid found inside synovial joints and bursae; produced by the synovial membranes.

Fluid Compartments

Distinct regions within the body where bodily fluids are compartmentalized, such as the intracellular and extracellular compartments.