Exam 13: Colleges and Universities

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.

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

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 those 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

Use the following information for Questions Lane College Foundation is governed by a board, some members of which are appointed by the President of Lane College and some of which are elected by the alumni.It was created to solicit and accept donations on behalf of Lane College, a private not-for-profit college.Lane College and its Foundation are deemed to be financially interrelated.All funds collected by the Foundation must be used to support activities of Lane College.The Foundation Board can select which activities of Lane College it supports.Lane Foundation received a $1 million bequest from the estate of a 1940 graduate. -At the time the Foundation receives the donation, Lane College should debit Asset $1 million and Credit what account for $1 million?

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

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.

Although it no longer applies to external financial reporting, AICPA 1973 Audit and Accounting Guide for Colleges and Universities provides which of the following in the fund structure

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

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

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?

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

Sheridan 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

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

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

During the current year, Kayla 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?

In 2011, a government 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 2012.For 2011 it should recognize revenues from the grant of

Under GASB 39, colleges and universities are required to bring their affiliated medical organizations into their financial reports.

Investments of a public college must be reported at fair value.