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?

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

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

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

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?

In June 2018, 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, 2018 it should recognize as tuition revenue

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

Landon College, a private college, received a $1 million donation.The donor specified that the principal of her gift could never be used for program activities, but the earnings on the principal must be used to provide scholarships to academically qualified students in the business school.The $1 million gift would increase which of the following categories of net assets?

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

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

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

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

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

In 2017, 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 2018.For 2017 it should recognize revenues from the grant of

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 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?