Exam 9: Accounting for Special-Purpose Entities Including Public Colleges and Universities

Public colleges and universities are required to report as special purpose entities engaged in both governmental- and business-type activities because they receive tax dollars and charge user fees.

Southeastern State University has chosen to report as a public university reporting as a special-purpose entity engaged only in business-type activities. Deferred Revenues were reported as of July 1,2014 in the amount of $5,000,000. Record the following transactions related to revenue recognition for the year ended June 30,2015. Include in the account titles the proper revenue classification (operating revenues,nonoperating revenues,etc.):

Special-purpose governments generally provide a limited set of services or programs.

Special-purpose governments that are engaged in both governmental and business-type activities or in more than one governmental activity are required to include all of the following in its financial statements except?

Which of the following is true regarding the Statement of Cash Flows for a public college?

Fees waived by the an educational institution in return for services to be provided by students are reported:

What are the criteria outlined in GASB Statement 39: Determining Whether Certain Organizations Are Component Units for requiring public college foundations to be reported as discretely presented components in the college's financial reports?

Special-purpose governmental entities that are engaged in a single business activity are not required to prepare government-wide financial statements,but may issue only enterprise fund statements.

Public colleges may depreciate infrastructure or may use the modified approach.

Tuition waived for work-study and graduate assistants is recognized as an expense when preparing a Statement of Revenues,Expenses,and Changes in Net Position.

Public colleges are never included as component units in the state CAFR.

Which of the following is true regarding the Statement of Cash Flows for a public college?

A public college had tuition and fees of $21,000,000. Scholarships,for which no services were required,amounted to $2,500,000. Graduate assistantships,for which services were required,amounted to $1,600,000. The amount to be reported by the public college as net tuition and fees would be:

Assume a government is a special-purpose entity engaged in fiduciary activities only. Which of the following financial statements would be required?

Public institutions of higher education are required to produce a Statement of Cash flows in addition to a Statement of Net Position and a Statement of Revenues,Expenses,and Changes in Net Position.

Which of the following would be true regarding the Statement of Net Position for a public college reporting as a special purpose entity engaged in business type activities only?

Special-purpose governmental entities that are engaged in a single governmental-type activity only are required to prepare only the statements required for governmental fund basis financial statements.

Which of the following is true regarding financial reporting of special-purpose entities?

Special purpose governments engaged only in fiduciary-type activities are required to prepare all of the following except:

Northern State University had the following account balances for the year ended and as of June 30,2015. Debits are not distinguished from credits,so assume all accounts have a "normal" balance. Required: Prepare,in good form,a Statement of Revenues,Expenses,and Changes in Net Position for Northern State University for the year ended June 30,2015.