Exam 11: College and University Accounting Private Institutions

In 2013,a private college received a grant of $70,000 with purpose restrictions.In 2014 funds were expended for the purpose outlined in the gift; however,it was not possible to determine whether the restricted funds or unrestricted funds were used.The presumption should be:

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. -As of December 31,2013,the contribution revenue would be classified as:

The AICPA Audit Guide: Not-for-Profit Organizations applies to private colleges and universities.

Private colleges and universities are (primarily)subject to financial reporting standards issued by?

Public colleges and universities are (primarily)subject to financial reporting standards issued by:

Under NACUBO guidelines,tuition waivers resulting from work-study programs are deducted from revenue.

With respect to private colleges and universities,why are quasi-endowments not classified as permanently restricted net assets while true endowments are?

Private colleges and universities recognize contribution revenue in the year in which the unconditional pledge is made.

What is the distinction between discounts and expenses for private colleges and universities?

A government owned college follows whose standards?

The equity section of the balance sheet for private,not-for-profit colleges and universities includes which of the following designations?

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

FASB standards require private colleges and universities to present a Statement of Functional Expense.

Private colleges and universities are required to report net assets within the categories of unrestricted,temporarily restricted and permanently restricted.

If the receivable for a student is $9,000 and the student pays only $1,000 as the result of receiving a work study appointment from the school,what would be the appropriate debits.

Investment income on Endowments held by private colleges and classified as permanently restricted net assets should be recorded as an increase in:

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,expenses are reported by function,either in the statements or in the notes.

A donor made a gift of cash to a private college or university in 2014 with an expressed purpose restriction.All of the funds were expended in 2014.The private college or university must:

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,depreciation is recorded.When reporting by function,depreciation is allocated to functional categories.

Distinguish between (a)true endowments,(b)term endowments,and (c)quasi-endowments.Explain how the net assets of each is classified by a private college or university.