Exam 11: College and University Accounting Private Institutions

Universities treat athletic scholarships as a reduction in revenue.

Plant acquired with either unrestricted or restricted sources must be recorded initially as temporarily restricted and then reclassified in accordance with the depreciation schedule.

A charitable remainder trust and a charitable gift annuity differ in that no formal trust agreement exists for a charitable gift annuity.

Public universities follow the authoritative standards of _____ and the _____ basis of accounting.

Ballard University, a private not-for-profit, billed four students for tuition and fees each in the amount of $ 8,450 each for fall semester. The University estimates 20% of tuition and fees will prove to be uncollectible. The University collected $ 9,422 as follows: Required: Prepare the journal entries to record the billing and subsequent collection or write-off for the transactions listed above.

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

When summer school classes at a university cover parts of two fiscal years, the revenues and expenses are

Tuition revenue for classes spanning two fiscal periods must be recorded in the period when the drop date passes and refunds are no longer an option.

In 2008 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 $350,000. Expenses associated with the grant totaled $225,000 in 2009. In the Statement of Activities for 2009, the college should show:

Under FASB standards, quasi-endowments are classified as Temporarily Restricted Net Assets.

Student scholarships for which no service was required amounted to $1,500. What is the correct journal entry?

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

Under NACUBO guidelines, tuition waivers associated with student work study programs should be reported as:

A private university received $18,000,000 in tuition and fees during an academic year. Graduate assistantships, for which services were required, were awarded in the amount of $1,200,000. Scholarships, for which no services were required, were awarded in the amount of $1,400,000. The net tuition and fees that would be reported in the Statement of Activities would be:

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

Only not-for-profit organizations follow FASB guidelines AND report the equity as unrestricted, temporarily restricted or permanently restricted.

Which of the following is true of a Statement of Activities prepared for a private college or university?

With respect to colleges and universities, estimates of uncollectible accounts are accounted for as reductions in revenue rather than bad debt expense.

With respect to colleges and universities, if tuition or fee reduction is an employee benefit it should be treated as a compensation expense, rather than a discount.

Identify three types of restrictions placed on temporarily restricted net assets of a private sector college or university and outline the accounting requirements for each type.