Question 1

A contribution is recorded as revenue when the promise to give is unconditional.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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

Accepted Answer

A)  Charitable remainder trusts 
B)  Permanent income-sharing agreements 
C)  Charitable gift annuities 
D)  Pooled (life) income funds 
A)  Charitable remainder trusts 
B)  Permanent income-sharing agreements 
C)  Charitable gift annuities 
D)  Pooled (life) income funds

Question 4

Which of the following is a required statement for a private college?

Accepted Answer

A)  Statement of Changes in Fund Balance 
B)  Statement of Revenues and Expenditures 
C)  Budgetary Comparison Statement 
D)  None of the above is a required statement 
A)  Statement of Changes in Fund Balance 
B)  Statement of Revenues and Expenditures 
C)  Budgetary Comparison Statement 
D)  None of the above is a required statement

Question 5

Tuition revenue for classes spanning two fiscal periods must be allocated on a pro-rata basis.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following types of college/university would have these components of the Financial Report? • Statement of Financial Position/ Balance Sheet.
• 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

Question 9

In 2009, a major drug company agreed to give a not-for-profit private college $1,700,000 to perform testing of a new drug. An advance payment of $700,000 was received in 2009. The college was to receive $4,000 per individual test. In 2009, the college completed 100 tests. How much revenue should the college report for 2009?

Accepted Answer

A)  $ - 0 - 
B)  $ 400,000 
C)  $ 700,000 
D)  $1,700,000 
A)  $ - 0 - 
B)  $ 400,000 
C)  $ 700,000 
D)  $1,700,000

Question 10

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 11

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
A. Net Assets: Unrestricted, Restricted, Invested in capital assets net of related debt.
B. Unrestricted, Temporarily Restricted, Permanently Restricted Net Assets
C. Paid in capital, Retained earnings

Accepted Answer

A. Net Assets: Unrestricted, Restricted,

Question 12

Public Colleges and Universities are subject to standards issued by the GASB.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

With respect to colleges and universities, academic or athletic tuition waivers are accounted for as reductions in revenue.

Accepted Answer

A) True 
 B)False

Question 15

How does a private college or university treat an academic scholarship?

Accepted Answer

A)  Reduction to revenue 
B)  Expense 
C)  No reduction of revenue or expense is recognized 
D)  Increase to revenue. 
A)  Reduction to revenue 
B)  Expense 
C)  No reduction of revenue or expense is recognized 
D)  Increase to revenue.

Question 16

Museum and other inexhaustible collections may or may not be capitalized and recorded in the accounts of a private college.

Accepted Answer

A) True 
 B)False

Question 17

If a donor contributes funds to be invested for a set number of years and then become available for expenditure, the funds would be considered as a(n)

Accepted Answer

A)  Quasi-endowment 
B)  Term endowment 
C)  Endowment 
D)  None of the above 
A)  Quasi-endowment 
B)  Term endowment 
C)  Endowment 
D)  None of the above

Question 18

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

Accepted Answer

A)  Debit Cash 
B)  Debit Cash and Debit Expense 
C)  Debit Expense 
D)  Debit Cash and Debit Tuition Discount on Accounts Receivable 
A)  Debit Cash 
B)  Debit Cash and Debit Expense 
C)  Debit Expense 
D)  Debit Cash and Debit Tuition Discount on Accounts Receivable

Question 19

A government owned college follows whose standards?

Accepted Answer

A)  FASB because GASB doesn't have standards for universities 
B)  GASB 
C)  AICPA 
D)  None of the above 
A)  FASB because GASB doesn't have standards for universities 
B)  GASB 
C)  AICPA 
D)  None of the above

Question 20

Private, Not-for-profit Colleges and Universities and Investor-owned Schools follow FASB standards and adhere to the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

A contribution is recorded as revenue when the promise to give is unconditional.

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

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

Which of the following is a required statement for a private college?

Tuition revenue for classes spanning two fiscal periods must be allocated on a pro-rata basis.

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.

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

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

Public Colleges and Universities are subject to standards issued by the GASB.

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

With respect to colleges and universities, academic or athletic tuition waivers are accounted for as reductions in revenue.

How does a private college or university treat an academic scholarship?

Museum and other inexhaustible collections may or may not be capitalized and recorded in the accounts of a private college.

If a donor contributes funds to be invested for a set number of years and then become available for expenditure, the funds would be considered as a(n)

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

A government owned college follows whose standards?

Private, Not-for-profit Colleges and Universities and Investor-owned Schools follow FASB standards and adhere to the accrual basis of accounting.

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 Trust Funds

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

Filters

Exam 11: College and University Accounting Private Institutions

A contribution is recorded as revenue when the promise to give is unconditional.

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

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

Which of the following is a required statement for a private college?

Tuition revenue for classes spanning two fiscal periods must be allocated on a pro-rata basis.

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.

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

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

Public Colleges and Universities are subject to standards issued by the GASB.

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

With respect to colleges and universities, academic or athletic tuition waivers are accounted for as reductions in revenue.

How does a private college or university treat an academic scholarship?

Museum and other inexhaustible collections may or may not be capitalized and recorded in the accounts of a private college.

If a donor contributes funds to be invested for a set number of years and then become available for expenditure, the funds would be considered as a(n)

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

A government owned college follows whose standards?

Private, Not-for-profit Colleges and Universities and Investor-owned Schools follow FASB standards and adhere to the accrual basis of accounting.

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 Trust Funds

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

Filters