Exam 11: College and University Accounting Private Institutions

Private,Not-for-Profit Colleges and Universities must have Statement of Financial Position,Statement of Activities,Statement of Cash Flows,and Notes to the Financial Statements included in their financial report.

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

A tuition waiver for a student who works as a graduate assistant is treated as a reduction in revenue.

Public colleges and universities are subject to the standards issued by the FASB.

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

Museum and other inexhaustible collections held by a private college must be capitalized and recorded in the accounts of a private college.

With respect to colleges and universities,estimates of uncollectible accounts are accounted for as bad debt expense.

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,contributed services should be recognized when the services create or enhance nonfinancial assets or require specialized skills,are provided by an individual possessing those skills,and would typically be purchased if not provided by donation.

A Pooled life income fund is a type of split-interest agreement.

A donor made a cash contribution of $300,000 to a private college for the purpose of acquiring a building. The private college properly recorded the gift of cash as a temporarily restricted revenue. When the building is acquired,the college should:

A Charitable gift annuity is a type of split-interest agreement.

Which of the following would not be considered a split-interest agreement,according to the Not-for-Profit Guide?

Investor-owned proprietary schools are subject to the standards issued by the FASB

A donor made a gift of cash to a private college or university in 2015 with an expressed purpose restriction. All of the funds were expended in 2015. The private college or university must:

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?

On December 1,2015,St.Sebastian University,a private college,received cash of $3,000 and a pledge for another $6,000 to be paid in January 2015. The amounts are to establish a permanent endowment to provide scholarships for music majors. How should this event be recorded on December 1,2015?

What is the basis of accounting for a private college or university and what are the principal sources of reporting standards?

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

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

Private colleges and universities and investor-owned proprietary schools report the same categories of net assets.