What is an auxiliary enterprise

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1. What is an auxiliary enterprise? Explain and give an example.

2. A government university receives a grant of $2,000,000 to improve its baseball field and stands. In its statement of cash flows, where should the cash flow be shown for the grant of $2,000,000? (for example, what type of cash flow activity?) Why?

3. A not-for-profit university receives an unrestricted contrition of $200,000. In its statement of cash flows, in which activity category would the cash inflow of $200,000 be shown? Why?

Reference no: EM131526502

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