Question 1

Inflows from self-supporting university operations,known as auxiliary enterprises,are classified as

Accepted Answer

A)  Unrestricted. 
B)  Temporarily Restricted. 
C)  Permanently Restricted. 
D)  Either A or B. 
A)  Unrestricted. 
B)  Temporarily Restricted. 
C)  Permanently Restricted. 
D)  Either A or B.

Question 2

Give 2 examples of unrestricted inflows,restricted inflows and permanently restricted inflows for a private college or university.

Accepted Answer

Unrestricted inflows:
•tuition and fees

Question 3

Private colleges and universities are subject to the standards issued by the GASB

Accepted Answer

A) True 
 B)False

Question 4

A donor gave a gift of $40,000 cash to a private college in 2013 to support basic psychology research.The funds were expended in 2014.The private college would recognize the $40,000 as:

Accepted Answer

A)  Revenue in 2013 increasing temporarily restricted net assets; recognize the expense in 2014, and reclassify the resources from temporarily restricted net assets to unrestricted net assets in 2014. 
B)  Deferred revenue in 2013 and as revenue in 2014, increasing temporarily restricted net assets. The expense would be recognized also in 2014, and the resources would be reclassified from temporarily restricted net assets to unrestricted net assets in 2014. 
C)  Deferred revenue in 2013 and as revenue in 2014, increasing unrestricted net assets. The expense would be recognized in 2014. 
D)  Either (b) or (c), depending upon the policy of the private college. 
A)  Revenue in 2013 increasing temporarily restricted net assets; recognize the expense in 2014, and reclassify the resources from temporarily restricted net assets to unrestricted net assets in 2014. 
B)  Deferred revenue in 2013 and as revenue in 2014, increasing temporarily restricted net assets. The expense would be recognized also in 2014, and the resources would be reclassified from temporarily restricted net assets to unrestricted net assets in 2014. 
C)  Deferred revenue in 2013 and as revenue in 2014, increasing unrestricted net assets. The expense would be recognized in 2014. 
D)  Either (b) or (c), depending upon the policy of the private college.

Question 5

Academic or athletic scholarships that do not require service to the college or university are considered scholarship allowances and treated as reductions in revenue.

Accepted Answer

A) True 
 B)False

Question 6

The NACUBO Financial Accounting and Reporting Manual treats estimates of uncollectible student accounts as:

Accepted Answer

A)  Bad debt expense 
B)  A reduction in tuition and fee revenue 
C)  Either bad debt expense or a reduction in tuition and fee revenue as long as the policy is consistently applied 
D)  None of the above; colleges and universities must use the direct write off method 
A)  Bad debt expense 
B)  A reduction in tuition and fee revenue 
C)  Either bad debt expense or a reduction in tuition and fee revenue as long as the policy is consistently applied 
D)  None of the above; colleges and universities must use the direct write off method

Question 7

NACUBO has issued a position paper titled "Accounting and Reporting Scholarship Allowances to Tuition and Other Revenues by Higher Education" to address the issue of scholarship allowances.How are scholarships and allowances treated in the financial statements by private colleges and universities?

Accepted Answer

If the tuition or fee reduction is an em

Question 8

The following information applies to the next three questions:
A private foundation made a multi-year pledge to a private college on December 31, 2013, the last day of the fiscal year. The pledge was to pay $12,000 per year each year for five years, beginning on December 31, 2014. The discount rate is 6%. The present value of five payments of $12,000 is $50,548. The present value of four payments of $12,000 is $41,581. No purpose or plant restrictions were involved.
-The private college would:

Accepted Answer

A)  Record interest revenue of $3,033 in 2013. 
B)  Record interest revenue of $3,033 in 2014. 
C)  Record contribution revenue of $3,033 in 2013. 
D)  Record contribution revenue of $3,033 in 2014. 
A)  Record interest revenue of $3,033 in 2013. 
B)  Record interest revenue of $3,033 in 2014. 
C)  Record contribution revenue of $3,033 in 2013. 
D)  Record contribution revenue of $3,033 in 2014.

Question 9

The FASB has the authority to set accounting standards for all of the following organizations except:

Accepted Answer

A)  Public colleges. 
B)  Private colleges. 
C)  For profit proprietary schools. 
D)  Educational foundations established to support a private college or university. 
A)  Public colleges. 
B)  Private colleges. 
C)  For profit proprietary schools. 
D)  Educational foundations established to support a private college or university.

Question 10

Record the following transactions on the books of Franklin College,a private college.All of the transactions are for the year 2014.
(a)The College received $312,000 in funds that were pledged in 2013,to be used for unrestricted purposes in 2014.
(b)The College was awarded $750,000 in grants that are to be used for restricted research purposes.$510,000 in cash was received,and $620,000 was expended on these projects.
(c)On Dec.1,the College received a pledge of $5,000,000 to build a new basketball arena.The funds were not expended or received in 2014,but are expected to be received early in 2015.
(d)The College had received cash of $200,000 in 2013 to be used to purchase computer equipment for the student labs.The equipment was purchased and put into service in early January 2014.The equipment has a five-year life and the College follows the practice of maintaining the balance of fixed assets (net of depreciation)in the temporarily restricted net asset category.
(e)On Dec.31,the College received an unrestricted pledge to receive $20,000 per year each year for six years,beginning on December 31,2014.The first installment of $ 20,000 was received on that date.The discount rate is 6%.The present value of six payments of $20,000 is $104,248.

Accepted Answer

The answer of Record the following transactions on the books...

Question 11

The following information applies to the next three questions:
A private foundation made a multi-year pledge to a private college on December 31, 2013, the last day of the fiscal year. The pledge was to pay $12,000 per year each year for five years, beginning on December 31, 2014. The discount rate is 6%. The present value of five payments of $12,000 is $50,548. The present value of four payments of $12,000 is $41,581. No purpose or plant restrictions were involved.
-The private college would:

Accepted Answer

A)  Record contribution revenue in the amount of $12,000 in each of the years 2014, 2015, 2014, 2015 and 2016. 
B)  Record contribution revenue in the amount of $50,548 in 2013. 
C)  Record contribution revenue in the amount of $50,548 in 2014. 
D)  None of the above 
A)  Record contribution revenue in the amount of $12,000 in each of the years 2014, 2015, 2014, 2015 and 2016. 
B)  Record contribution revenue in the amount of $50,548 in 2013. 
C)  Record contribution revenue in the amount of $50,548 in 2014. 
D)  None of the above

Question 12

What are the reporting options for the Statement of Financial Position of institutions of higher education as outlined by the NACUBO Financial Accounting and Reporting Manual for Higher Education?

Accepted Answer

the NACUBO Financial Accounting and Repo

Question 13

What accounts appear in the equity section of the balance sheet for a college,assuming the college is:
A.Public - government owned
B.Private not-for-profit
C.For Profit - Investor owned business

Accepted Answer

A.Net Assets: Unrestricted,Res

Question 14

Which of the following is true regarding the investments of private colleges in securities with determinable fair values?

Accepted Answer

A)  Investments are to be carried at fair value; unrealized gains and losses are to be reported in the Statement of Activities along with realized gains and losses. 
B)  Investments are to be carried at fair value or amortized cost, depending upon whether the investments are in equity or debt securities. 
C)  Investments are to be carried at the lower of cost or market with unrealized losses reported in the Statement of Activities along with realized gains and losses. 
D)  None of the above. 
A)  Investments are to be carried at fair value; unrealized gains and losses are to be reported in the Statement of Activities along with realized gains and losses. 
B)  Investments are to be carried at fair value or amortized cost, depending upon whether the investments are in equity or debt securities. 
C)  Investments are to be carried at the lower of cost or market with unrealized losses reported in the Statement of Activities along with realized gains and losses. 
D)  None of the above.

Question 15

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,if both unrestricted and restricted resources are available for a restricted purpose,the FASB requires that the institution recognize the use of restricted resources first.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true regarding accounting and financial reporting for private colleges and universities?

Accepted Answer

A)  Expenses may be unrestricted or temporarily restricted depending on donor intent. 
B)  The Statement of Cash Flows must use the direct method. 
C)  A Statement of Unrestricted Revenues, Expenses and Other Changes in Unrestricted Net Assets and a Statement of Changes in Net Assets may be presented instead of a Statement of Activities. 
D)  None of the above are true. 
A)  Expenses may be unrestricted or temporarily restricted depending on donor intent. 
B)  The Statement of Cash Flows must use the direct method. 
C)  A Statement of Unrestricted Revenues, Expenses and Other Changes in Unrestricted Net Assets and a Statement of Changes in Net Assets may be presented instead of a Statement of Activities. 
D)  None of the above are true.

Question 17

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,revenues and expenses are reported at gross amounts and gains and losses are reported net.

Accepted Answer

A) True 
 B)False

Question 18

An unconditional pledge of support received by a private college is recorded as revenue when the promise to give is unconditional.

Accepted Answer

A) True 
 B)False

Question 19

The following information applies to the next three questions:
A private foundation made a multi-year pledge to a private college on December 31, 2013, the last day of the fiscal year. The pledge was to pay $12,000 per year each year for five years, beginning on December 31, 2014. The discount rate is 6%. The present value of five payments of $12,000 is $50,548. The present value of four payments of $12,000 is $41,581. No purpose or plant restrictions were involved.
-In 2013 a faculty member at a private college received a grant from the National Science Foundation to conduct basic research on tree frogs in the amount of $500,000.Expenses associated with the grant totaled $290,000 in 2014.In the Statement of Activities for 2014,the college should show:

Accepted Answer

A)  Temporarily Restricted Revenues of $500,000 and Unrestricted expenses of $290,000. 
B)  Temporarily Restricted Revenues of $290,000 and Unrestricted expenses of $290,000. 
C)  Revenues of $290,000 and expenses of $290,000 in Unrestricted Net Assets. 
D)  Expenses of $ 290,000 in Unrestricted Net Assets and a decrease in Temporarily Restricted Net Assets of $ 290,000 
A)  Temporarily Restricted Revenues of $500,000 and Unrestricted expenses of $290,000. 
B)  Temporarily Restricted Revenues of $290,000 and Unrestricted expenses of $290,000. 
C)  Revenues of $290,000 and expenses of $290,000 in Unrestricted Net Assets. 
D)  Expenses of $ 290,000 in Unrestricted Net Assets and a decrease in Temporarily Restricted Net Assets of $ 290,000

Question 20

Which of the following types of college/university would have these components of the Financial Report?
•Statement of Financial Position..
•Statement of Activities.
•Statement of Cash Flows.
•Notes to the Financial Statements.

Accepted Answer

A)  Investor Owned. 
B)  Public University. 
C)  Private Not-for-Profit. 
D)  None of the above. 
A)  Investor Owned. 
B)  Public University. 
C)  Private Not-for-Profit. 
D)  None of the above.

Inflows from self-supporting university operations,known as auxiliary enterprises,are classified as

Give 2 examples of unrestricted inflows,restricted inflows and permanently restricted inflows for a private college or university.

Private colleges and universities are subject to the standards issued by the GASB

A donor gave a gift of $40,000 cash to a private college in 2013 to support basic psychology research.The funds were expended in 2014.The private college would recognize the $40,000 as:

Academic or athletic scholarships that do not require service to the college or university are considered scholarship allowances and treated as reductions in revenue.

The NACUBO Financial Accounting and Reporting Manual treats estimates of uncollectible student accounts as:

NACUBO has issued a position paper titled "Accounting and Reporting Scholarship Allowances to Tuition and Other Revenues by Higher Education" to address the issue of scholarship allowances.How are scholarships and allowances treated in the financial statements by private colleges and universities?

The FASB has the authority to set accounting standards for all of the following organizations except:

What are the reporting options for the Statement of Financial Position of institutions of higher education as outlined by the NACUBO Financial Accounting and Reporting Manual for Higher Education?

What accounts appear in the equity section of the balance sheet for a college,assuming the college is: A.Public - government owned B.Private not-for-profit C.For Profit - Investor owned business

Which of the following is true regarding the investments of private colleges in securities with determinable fair values?

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,if both unrestricted and restricted resources are available for a restricted purpose,the FASB requires that the institution recognize the use of restricted resources first.

Which of the following is true regarding accounting and financial reporting for private colleges and universities?

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,revenues and expenses are reported at gross amounts and gains and losses are reported net.

An unconditional pledge of support received by a private college is recorded as revenue when the promise to give is unconditional.

Which of the following types of college/university would have these components of the Financial Report? •Statement of Financial Position.. •Statement of Activities. •Statement of Cash Flows. •Notes to the Financial Statements.

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

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 11: College and University Accounting Private Institutions

Inflows from self-supporting university operations,known as auxiliary enterprises,are classified as

Give 2 examples of unrestricted inflows,restricted inflows and permanently restricted inflows for a private college or university.

Private colleges and universities are subject to the standards issued by the GASB

A donor gave a gift of $40,000 cash to a private college in 2013 to support basic psychology research.The funds were expended in 2014.The private college would recognize the $40,000 as:

Academic or athletic scholarships that do not require service to the college or university are considered scholarship allowances and treated as reductions in revenue.

The NACUBO Financial Accounting and Reporting Manual treats estimates of uncollectible student accounts as:

NACUBO has issued a position paper titled "Accounting and Reporting Scholarship Allowances to Tuition and Other Revenues by Higher Education" to address the issue of scholarship allowances.How are scholarships and allowances treated in the financial statements by private colleges and universities?

The FASB has the authority to set accounting standards for all of the following organizations except:

What are the reporting options for the Statement of Financial Position of institutions of higher education as outlined by the NACUBO Financial Accounting and Reporting Manual for Higher Education?

What accounts appear in the equity section of the balance sheet for a college,assuming the college is: A.Public - government owned B.Private not-for-profit C.For Profit - Investor owned business

Which of the following is true regarding the investments of private colleges in securities with determinable fair values?

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,if both unrestricted and restricted resources are available for a restricted purpose,the FASB requires that the institution recognize the use of restricted resources first.

Which of the following is true regarding accounting and financial reporting for private colleges and universities?

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,revenues and expenses are reported at gross amounts and gains and losses are reported net.

An unconditional pledge of support received by a private college is recorded as revenue when the promise to give is unconditional.

Which of the following types of college/university would have these components of the Financial Report? •Statement of Financial Position.. •Statement of Activities. •Statement of Cash Flows. •Notes to the Financial Statements.

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

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters