Exam 15: Accounting for Colleges and Universities

How would estimated uncollectible tuition and fees be reported on the financial statements of a university? I. It would be reported as part of net revenue by a public university. II) It would be reported as an operating expense by a public university. III) It would be reported as an operating expense by a private university.

How would a private college or university report its estimate for uncollectible tuition and fees on its statement of activities?

During the year ended June 30, 2020, Hopkins College, a private college, received a federal government grant of $800,000 for research on the role of music in improving math skills for students. Expenses that were not capital in nature for this research amounted to $100,000 during the same year. Under FASB standards, which of the following best represents how Hopkins College would report this nonexchange transaction in the net assets section for the year ended June 30, 2020? A. B. C. D.

The Uniform Prudent Management of Institutional Funds Act specifies the spending rate a not-for-profit should use when establishing its expenditure policies.

A private college would record a federal grant received to test a medical device that the federal government intends to patent as Contributions-With Donor Restrictions.

State educational appropriations received by a public university are classified as which of the following on the statement of revenues, expenses, and changes in net position?

Which of the following is not a classification of revenues for a college or university as recommended by the National Association of College and University Business Officers (NACUBO)?

A statement of cash flows is required by GAAP for both private colleges and universities and public colleges and universities engaged in business-type activities.

The accrual basis of accounting is used to record revenues and expenses of both public business-type and private colleges and universities.

Culver City College, a public college, has a 10-week summer session that starts on June 25, 2020, so that one week is held during FY 2020 and the other nine weeks meet during FY 2021. Tuition and fees in the amount of $1,000,000 were collected from students for classes to be conducted in this session. What amount should Culver City College recognize as unrestricted revenue in each of the years ended (FYE) June 30, 2020 and June 30, 2021?            A. $\$ \quad 100,000\quad \$ \quad 900,000$ B. C. D. $\$ \quad 500,000 \quad \$ \quad 500,000$

Contributions with no eligibility requirement restricted by an external donor for a particular operating purpose would be reported as increases to restricted fund balances by a public college or university and as an addition to net assets with donor restrictions by a private college or university.

Which of the following is a typical classification of a functional expense in a college or university?

The composite financial index (CFI), a measure of financial health for colleges and universities, includes which of the following ratios?

Term endowments are donor restricted resources whose principal is to be maintained intact until the happening of a particular event or the passage of a stated period of time.

Which of the following measures may be useful to decision makers evaluating the financial condition of a college or university?

Which of the following statements concerning the audits of colleges and universities is True?

What type of college or university must report expenses by functional classification?

Colleges and universities often make loans to students. How would these loans be reported on the financial statements?

The college scorecard allows students and parents to assess colleges' and universities' performance based on metrics such as affordability and graduation rates.

Prepare in general journal form the entries required for each of the following selected transactions of Northern University, a state-funded public institution engaged only in business-type activities. Some of these transactions are related and some are not. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)  1. A generous alumnus donated $300,000 that can only be used for research on diabetes. The full $300,000 was received in the current fiscal year. 2. During the current fiscal year, expenses of $150,000 were made in cash for diabetes research (see item 1 above). 3. $2,000,000 in long-term bonds was issued to construct a new parking garage on campus. 4. During the current fiscal year, the parking garage (see item 3 above) was partially completed at a total cash expenditure of $1,800,000. 5. During the current fiscal year, interest was paid in the amount of $120,000 on the long-term bonds issued for the parking garage project (see item 3 above).