Shaun Is a Student Who Has Received an Athletic Scholarship

question 28

Multiple Choice

Shaun is a student who has received an athletic scholarship to State University.The scholarship paid $14,000 for tuition,$2,500 for fees,and $1,000 for books.In addition,Shaun's dormitory fees of $8,500 were paid by the University when he agreed to counsel freshman on campus living.What amount must Shaun include in his gross income?

• A)$9,500
• B)$11,000
• C)$2,500
• D)$8,500
• E)Zero - none of these benefits is included in gross income

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Definitions:

Macro-aging Schedule

A method used in financial analysis that categorizes accounts receivable or other financial assets based on the period of time they have been outstanding.

Current Ratio

A financial metric used to evaluate a company's ability to pay off its short-term liabilities with its short-term assets.

Current Liabilities

Short-term financial obligations that a company owes and is expected to pay within one year or within the normal operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.