Laura Is a Student at a State University

question 89

Multiple Choice

Laura is a student at a state university. In 2015, she received a scholarship of $5,000 for tuition and fees and an assistantship for $3,000. What is the amount that Laura must report in income?

• A) $8,000.
• B) $5,000.
• C) $0.
• D)$3,000.

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Definitions:

Financial Statements

A set of formal documents tracking the financial activities, status, and cash flows of a business, providing insight into its financial health over a specified period.

Accrual

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Interest Expense

The amount an entity pays for the use of borrowed funds throughout a certain duration.

Net Cash Flow

The amount of cash generated or used by a company in a given period, calculated as the sum of cash flow from operating, investing, and financing activities.