Exam 11: College and University Accounting Private Institutions

In 2014,a private college received a grant of $100,000 with purpose restrictions. In 2015 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:

Which of the following would not be correct with respect to accounting for colleges and universities under the jurisdiction of the FASB?

Plant acquired by a private college with either unrestricted or restricted resources may be (1)recorded initially as unrestricted OR (2)recorded initially as temporarily restricted and then classified in accordance with the depreciation schedule.

If the receivable for a student is $8,000 and the student pays only $500 as the result of receiving an athletic scholarship from the school,what would be the appropriate debits

NACUBO guidelines require both revenues and expenses for split summer sessions to be apportioned to the two fiscal years.

In 2014 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 $400,000. Expenses associated with the grant totaled $375,000 in 2015. In the Statement of Activities for 2015,the college should show:

College and universities treat uncollectible student accounts as reductions in revenue,rather than bad debt expense.

Private colleges and universities use the same accounting and reporting standards as public colleges and universities.

The three classes of net assets required to be presented by a private college or university are:

Which of the following is true of a Statement of Cash Flows for a private college or university?

Private colleges and universities record depreciation expense and allocate it to functions.

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,multiyear pledges are recorded as restricted revenue for the present value pledge (net of estimates for uncollectible amounts)when the pledge is made.

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

Funds that are restricted for a certain number of years and then released are considered to be quasi-endowments and are classified as temporarily restricted funds by private colleges and universities.

Private colleges and universities use the same accounting and reporting standards as other private not-for-profit organizations.

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

Unless acquired with restricted funds,plant acquired by a private college must be recorded as unrestricted.

The following information applies to the next three questions: A private foundation made a multi-year pledge to a private college on December 31, 2014, the last day of the fiscal year. The pledge was to pay $15,000 per year each year for five years, beginning on December 31, 2015. The discount rate is 6%. The present value of five payments of $15,000 is $63,185. The present value of four payments of $15,000 is $51,977. No purpose or plant restrictions were involved. -The private college would:

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

A government owned college follows whose standards?