Question 1

Under GASB standards,public colleges and universities are considered general purpose governments.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following items would not affect the amounts reported in the Revenues and Gains section of the statement of activities for a private college or university?

Accepted Answer

A)  Student tuition and fees. 
B)  Tuition and fees discounts and allowances. 
C)  Net assets released from restriction. 
D)  Deferred revenues. 
A)  Student tuition and fees. 
B)  Tuition and fees discounts and allowances. 
C)  Net assets released from restriction. 
D)  Deferred revenues.

Question 3

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

Accepted Answer

A)  Both private and public colleges and universities. 
B)  Private colleges and universities. 
C)  Public colleges and universities. 
D)  Neither private nor public colleges and universities. 
A)  Both private and public colleges and universities. 
B)  Private colleges and universities. 
C)  Public colleges and universities. 
D)  Neither private nor public colleges and universities.

Question 4

Nongovernmental (private)colleges and universities should follow FASB standards; governmental (public)colleges and universities should follow GASB standards.

Accepted Answer

A) True 
 B)False

Question 5

"Tuition and fees should be recorded as revenues of colleges and universities even though they must be reported net of tuition refunds,scholarships,and fellowships." Do you agree or disagree with this statement? If you disagree,explain how refunds,scholarships,and fellowships should be recorded.

Accepted Answer

The answer of "Tuition and fees should be recorded as...

Question 6

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

Accepted Answer

A)  Academic wages and benefits. 
B)  Student support. 
C)  Institutional support. 
D)  Depreciation. 
A)  Academic wages and benefits. 
B)  Student support. 
C)  Institutional support. 
D)  Depreciation.

Question 7

Private colleges and universities report term endowments as permanently restricted net assets until the term has expired.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  An expense. 
B)  A receivable. 
C)  A liability. 
D)  An investment. 
A)  An expense. 
B)  A receivable. 
C)  A liability. 
D)  An investment.

Question 9

A private college would report which of the following assets differently than a public college?

Accepted Answer

A)  Land. 
B)  Intangible assets. 
C)  Collections. 
D)  Equipment. 
A)  Land. 
B)  Intangible assets. 
C)  Collections. 
D)  Equipment.

Question 10

Which of the following statements about the Uniform Prudent Management of Institutional Funds Act (UPMIFA)is correct?

Accepted Answer

A)  It establishes a maximum total return rate for investments. 
B)  It requires that the spending rate for the return on investments be no more than five percent. 
C)  It allows institutions to release net assets from restrictions if certain criteria are met. 
D)  It requires that specific policies concerning solicitation of donations be established. 
A)  It establishes a maximum total return rate for investments. 
B)  It requires that the spending rate for the return on investments be no more than five percent. 
C)  It allows institutions to release net assets from restrictions if certain criteria are met. 
D)  It requires that specific policies concerning solicitation of donations be established.

Question 11

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)?

Accepted Answer

A)  Sporting events. 
B)  Federal appropriations. 
C)  Investment income. 
D)  Private gifts. 
A)  Sporting events. 
B)  Federal appropriations. 
C)  Investment income. 
D)  Private gifts.

Question 12

An annuity agreement requires that a college pay the donor (or other designated individual)a fixed dollar amount at specified time intervals.

Accepted Answer

A) True 
 B)False

Question 13

Colleges and universities expending federal funds are required to comply with which of the following Office of Management and Budget (OMB)circulars?

Accepted Answer

A)  Circular A-133,"Audits of States,Local Governments and Nonprofit Organizations," if expenditures for the year were $500,000 or more. 
B)  Circular A-21,"Cost Principles for Educational Institutions," to determine if allowable costs are charged to federal grants. 
C)  Circular A-110,"Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education,Hospitals,and Other Non-Profit Organizations" to help administrators determine how expenditures related to federal grants are to be made. 
D)  All of the above. 
A)  Circular A-133,"Audits of States,Local Governments and Nonprofit Organizations," if expenditures for the year were $500,000 or more. 
B)  Circular A-21,"Cost Principles for Educational Institutions," to determine if allowable costs are charged to federal grants. 
C)  Circular A-110,"Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education,Hospitals,and Other Non-Profit Organizations" to help administrators determine how expenditures related to federal grants are to be made. 
D)  All of the above.

Question 14

Refunds of college or university tuition or fees should be recorded as expenses in the period in which they are made.Do you agree? Why or why not?

Accepted Answer

The answer of Refunds of college or university tuition or...

Question 15

If a private university used the National Association of Colleges and University Business Officers (NACUBO)chart of accounts for reporting expenses,it must disclose expenses by program and support function in the notes.

Accepted Answer

A) True 
 B)False

Question 16

Revenues and expenses of both public business-type and private colleges and universities are accounted for on the accrual basis.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true regarding generally accepted accounting principles (GAAP)for colleges and universities?

Accepted Answer

A)  The FASB has set standards for private and public colleges and universities from the time of its inception in 1974. 
B)  The National Association of Colleges and University Business Officers (NACUBO)provides category (b)accounting principles under the FASB GAAP hierarchy. 
C)  Public and private colleges and universities are subject to the requirements in the AICPA audit and accounting guide for Not-for-Profit Entities. 
D)  The GASB is responsible for establishing GAAP for public colleges and universities. 
A)  The FASB has set standards for private and public colleges and universities from the time of its inception in 1974. 
B)  The National Association of Colleges and University Business Officers (NACUBO)provides category (b)accounting principles under the FASB GAAP hierarchy. 
C)  Public and private colleges and universities are subject to the requirements in the AICPA audit and accounting guide for Not-for-Profit Entities. 
D)  The GASB is responsible for establishing GAAP for public colleges and universities.

Question 18

A receipt of a $500,000 gift by a private college that is stipulated by the donor to be used to endow a "chaired" professorship in accounting would be recorded as an increase in temporarily restricted net assets.

Accepted Answer

A) True 
 B)False

Question 19

Cactus College,a small private college,received a research grant from NACUBO to study whether service efforts and accomplishments measures improve institutional performance.In accordance with FASB standards the grant would be reported as an increase in:

Accepted Answer

A)  Unrestricted net assets. 
B)  Temporarily restricted net assets. 
C)  Permanently restricted net assets. 
D)  Unrestricted designated net assets. 
A)  Unrestricted net assets. 
B)  Temporarily restricted net assets. 
C)  Permanently restricted net assets. 
D)  Unrestricted designated net assets.

Question 20

How would estimated uncollectible tuition and fees be reported on the financial statements of a university?

Accepted Answer

A)  It would be reported as part of net revenue by a public university. 
B)  It would be reported as an operating expense by a public university. 
C)  It would be reported as an operating expense by a private university. 
D)  Both A and C are correct methods of reporting estimated uncollectible tuition and fees. 
A)  It would be reported as part of net revenue by a public university. 
B)  It would be reported as an operating expense by a public university. 
C)  It would be reported as an operating expense by a private university. 
D)  Both A and C are correct methods of reporting estimated uncollectible tuition and fees.

Under GASB standards,public colleges and universities are considered general purpose governments.

Which of the following items would not affect the amounts reported in the Revenues and Gains section of the statement of activities for a private college or university?

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

Nongovernmental (private)colleges and universities should follow FASB standards; governmental (public)colleges and universities should follow GASB standards.

"Tuition and fees should be recorded as revenues of colleges and universities even though they must be reported net of tuition refunds,scholarships,and fellowships." Do you agree or disagree with this statement? If you disagree,explain how refunds,scholarships,and fellowships should be recorded.

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

Private colleges and universities report term endowments as permanently restricted net assets until the term has expired.

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

A private college would report which of the following assets differently than a public college?

Which of the following statements about the Uniform Prudent Management of Institutional Funds Act (UPMIFA)is correct?

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)?

An annuity agreement requires that a college pay the donor (or other designated individual)a fixed dollar amount at specified time intervals.

Colleges and universities expending federal funds are required to comply with which of the following Office of Management and Budget (OMB)circulars?

Refunds of college or university tuition or fees should be recorded as expenses in the period in which they are made.Do you agree? Why or why not?

If a private university used the National Association of Colleges and University Business Officers (NACUBO)chart of accounts for reporting expenses,it must disclose expenses by program and support function in the notes.

Revenues and expenses of both public business-type and private colleges and universities are accounted for on the accrual basis.

Which of the following statements is true regarding generally accepted accounting principles (GAAP)for colleges and universities?

A receipt of a $500,000 gift by a private college that is stipulated by the donor to be used to endow a "chaired" professorship in accounting would be recorded as an increase in temporarily restricted net assets.

Cactus College,a small private college,received a research grant from NACUBO to study whether service efforts and accomplishments measures improve institutional performance.In accordance with FASB standards the grant would be reported as an increase in:

How would estimated uncollectible tuition and fees be reported on the financial statements of a university?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities-Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities-Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters

Exam 15: Accounting for Colleges and Universities

Under GASB standards,public colleges and universities are considered general purpose governments.

Which of the following items would not affect the amounts reported in the Revenues and Gains section of the statement of activities for a private college or university?

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

Nongovernmental (private)colleges and universities should follow FASB standards; governmental (public)colleges and universities should follow GASB standards.

"Tuition and fees should be recorded as revenues of colleges and universities even though they must be reported net of tuition refunds,scholarships,and fellowships." Do you agree or disagree with this statement? If you disagree,explain how refunds,scholarships,and fellowships should be recorded.

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

Private colleges and universities report term endowments as permanently restricted net assets until the term has expired.

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

A private college would report which of the following assets differently than a public college?

Which of the following statements about the Uniform Prudent Management of Institutional Funds Act (UPMIFA)is correct?

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)?

An annuity agreement requires that a college pay the donor (or other designated individual)a fixed dollar amount at specified time intervals.

Colleges and universities expending federal funds are required to comply with which of the following Office of Management and Budget (OMB)circulars?

Refunds of college or university tuition or fees should be recorded as expenses in the period in which they are made.Do you agree? Why or why not?

If a private university used the National Association of Colleges and University Business Officers (NACUBO)chart of accounts for reporting expenses,it must disclose expenses by program and support function in the notes.

Revenues and expenses of both public business-type and private colleges and universities are accounted for on the accrual basis.

Which of the following statements is true regarding generally accepted accounting principles (GAAP)for colleges and universities?

A receipt of a $500,000 gift by a private college that is stipulated by the donor to be used to endow a "chaired" professorship in accounting would be recorded as an increase in temporarily restricted net assets.

Cactus College,a small private college,received a research grant from NACUBO to study whether service efforts and accomplishments measures improve institutional performance.In accordance with FASB standards the grant would be reported as an increase in:

How would estimated uncollectible tuition and fees be reported on the financial statements of a university?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities-Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities-Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters