Exam 13: Colleges and Universities

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?

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Question 1

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

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Question 2

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How do the three major financial statements of a public college or university differ from those of a private not-for-profit college or university?

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The FASB's requirements for a private college or university are similar to those of the GASB for a public college or university engaged only in business-type activities.That is, both types of entities must present a statement of net assets (or net position for public institutions); a statement of revenues, expenses, and changes in net assets (or net position for public institutions); and a statement of cash flows, all on the accrual basis of accounting.The FASB (but not the GASB)requires net assets to be reported in three categories: unrestricted, temporarily restricted, and permanently restricted.The FASB requires the statement of cash flows to present three categories: operating, financing, and investing.The FASB encourages use of the direct method, but the indirect method is acceptable.The GASB requires use of the direct method and presentation of information in four categories: operating, non-capital financing, capital financing, and investing.

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

(True/False)

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Question 4

Austin Community College, a public institution, issues stand-alone financial statements.Although the college maintains its accounts on a fund basis, it does not include a combined fund statement of net position or statement of revenues, expenses, and changes in net position in its financial statements.Can such a practice be consistent with generally accepted accounting principles? Explain, citing specific GASB provisions or pronouncements.

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Question 5

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.

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Question 6

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

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Question 7

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

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Question 8

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?

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Question 9

What are the key reporting options available to public colleges and universities?

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Question 10

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

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Question 11

A public university had tuition and fees for the year ended June 30, 2015, 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

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Question 12

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

(True/False)

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Question 13

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?

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Question 14

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

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Question 15

In what ways can declines in the stock market affect the fiscal health of colleges and universities?

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Question 16

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

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Question 17

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

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Question 18

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

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Question 19

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

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Question 20

Showing 1 - 20 of 39

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?

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

How do the three major financial statements of a public college or university differ from those of a private not-for-profit college or university?

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.

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

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

What are the key reporting options available to public colleges and universities?

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

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

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?

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

In what ways can declines in the stock market affect the fiscal health of colleges and universities?

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

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

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

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

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Pensions and Other Fiduciary Activities

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Health Care Providers

Managing for Results

Auditing Governments and Notforprofit Organizations

Federal Government Accounting

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