Exam 13: Colleges and Universities

In a public university setting,general administration and sponsored research are examples of revenues classified by source.

Private not-for-profit colleges and universities are subject to the same FASB standards as other not-for-profit entities.

In accounting for colleges and universities,related entities should either be disclosed in the Notes to the Financial Statements or reported as component entities,depending on the degree of control and economic interest.

A not-for-profit university operates its college book-store as an auxiliary enterprise.During the year the store has revenues of $30 million and expenses of $27 million.In its statement of activities the university should report

The single largest source of revenues for not-for-profit universities is tuition and fees.

Dormitories and bookstores are examples of auxiliary enterprises business-type activities)engaged in by both private and public universities.

During the year,Dakota University's board of trustees established a $500,000 fund to be retained and invested for scholarship grants.The fund earned $30,000,which had not been distributed by December 31.What amount should Dakota report in a board-designated quasi)endowment fund's net position at December 31?

Under GASB Statement No.39,colleges and universities are required to bring their affiliated medical organizations into their financial reports.

Although it no longer is required for external financial reporting,the AICPA's 1973 Audits of Colleges and Universities provides for which of the following in its guidance on fund structure?

A not-for-profit university maintained as endowment of $800,000,the income of which was restricted for an annual conference on international relations.In a particular year,the market value of the endowment increased by $80,000.The university held a conference on international relations at a cost of $86,000.The university should report

GASB requires that revenues be classified into three categories of restrictiveness based on donor specification.

Most colleges and universities classify revenues by source and expenses by function.

Investments of a public college must be reported at amortized cost.

A public university had tuition and fees for the year ended June 30,2012,in the amount of $27,000,000.Scholarships,for which no services were required,amounted to $2,100,000.Graduate assistantships,for which services were required,amounted to $1,950,000.The amount to be reported by the university as net tuition and fee revenue would be

In the current year,Generous University awarded scholarships to graduate students in the amount of $5,000,000.The recipients are not required to provide any services in return for the scholarships.How should the university record the award? a) Scholarship expense \ 5,000,000 Accounts payable \ 5,000,000 b) Tuition deductions-unrestricted student aid \ 5,000,000 Accounts receivable \ 5,000,000 c) Scholarship expense \ 5,000,000 Accounts receivable \ 5,000,000 d) Tuition deductions - unrestricted student aid \ 5,000,000 Accounts payable \ 5,000,000

Which of the following criteria must be met for a public university to report affiliated organizations as component units? I.The university is entitled to access the resources II)The economic resources are significant to the component III)The economic resources received or held are almost entirely for the direct benefit of the university

Declines in the stock market can affect the fiscal health of colleges and universities.Which of the following is the least likely reason for that?

When a semester starts and ends in different fiscal years,FASB standards require not-for-profit colleges to apportion tuition and fees between the two years.

Private colleges and universities should account for all grants on the accrual basis as exchange transactions.

Financial statements for Smith College,a church-supported college,should be prepared according to standards set by