Exam 13: Colleges and Universities

During the current year,Luis University received a $50,000 gift from an alumna who specified that it must be used to pay travel costs for faculty to attend health care conferences in foreign countries.During the year the university spent $8,000 to support travel to a health care conference in Italy.The $8,000 disbursement will cause a NET decrease in which class of net assets?

Government public)colleges and universities must adhere to the FASB pronouncements.

An accountant has encountered a perplexing financial reporting issue related to the private college for which he is preparing financial statements.The issue is not specifically addressed by FASB Statements.To what standards would the accountant first look for guidance?

In 2014,a public university was awarded a federal reimbursement grant of $18 million to carry out research.Of this,$12 million was intended to cover direct costs and $6 million to cover overhead.In a particular year,the university incurred $4 million in allowable direct costs and received $3.4 million from the federal government.It expected to incur the remaining costs and collect the remaining balance in 2015.For 2014 it should recognize revenues from the grant of

Current operating expenses of a public college may be classified by which of the following?

For a not-for-profit college or university,which of the following categories of net assets is NOT appropriate in its external financial statements?

During the year,Goodman College received the following: -An unrestricted $280,000 pledge to be paid the following year -A $140,000 cash gift restricted for study-abroad scholarships -A notice from a recent business school graduate that he has named the college as a beneficiary of $60,000 in his will What amount of contribution revenue should Goodman College report in its statement of activities?

Private colleges that receive federal grants are required to apply government accounting standards set by the GASB.

At the time the foundation receives the donation,Lane College should debit Asset $1 million and credit what account for $1 million?

Tuition revenue should be reported net of tuition discounts and scholarships.

Bristol Public School Foundation had available temporarily restricted gifts in excess of $200,000.The foundation decided to invest this money temporarily until it needs the funds for the restricted purpose.The donors had made no specific stipulations regarding investment earnings but the foundation board had voted to use the earnings on the projects for which the gift had originally been restricted.At year-end,the securities had a fair value of $200,500.The appropriate way to recognize the change in fair value is

In June 2015,a public university bills and collects $45 million in tuition for the summer semester that runs from June 1 through July 15.In addition,in May and June it bills $300 million for the fall semester that runs from September 1 through December 15.Of this amount it collects only $120 million expecting to collect the balance prior to September 1).In its statement of revenues,expenses,and changes in net position for the fiscal year ending June 30,2015 it should recognize as tuition revenue

At the time the foundation receives the donation,the foundation should debit Cash for $1 million and credit what account for $1 million?

Long-lived assets held by public universities are carried at cost,or fair value if donated.