Exam 9: Advanced Topics for State and Local Governments

Northern State University had the following account balances for the year ended and as of June 30,2012.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 Assets for Northern State University for the year ended June 30,2012.

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 with respect to public four-year higher education institutions (public colleges)?

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

Higher education institutions that report as special purpose entities engaged in business-type activities only should report the same net asset classifications (invested in capital assets,net of related debt,restricted,unrestricted)as are reported in the government-wide statement of net assets.

Special purpose governments may be stand alone local governments or may be component units of other governments that are issuing separate reports.

Which of the following is not required for a special-purpose local government engaged in only fiduciary type activities?

The Implementation Guide for GASB Statement No.34 provides a distinction between general-purpose governments and special-purpose governments.Discuss the difference between the two.

According to the National Association of College and Business Officers,scholarship discounts and allowances paid by institutional funds:

Revenue sources for public colleges include tuition and fees,state appropriations and donations.All other income is reported as unrelated business income.

Which of the following statements is true regarding accounting and financial reporting for public colleges and universities?

Most public colleges and universities choose to report as special purpose entities engaged in only business-type activities.

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

Special-purpose governments that are engaged in more than one governmental activity are permitted to combine the fund and government-wide financial statements.

What are the required parts of the annual financial report for special-purpose local governments engaged only in business-type activities?

Which of the following is true regarding the Statement of Revenues,Expenses and Changes in Net Assets for a public college reporting as a special purpose entity engaged in business type activities only?

City government and library districts are examples of general -purpose state or local governments.

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

According to GASB Statement 33,with respect to public colleges and universities,pledges receivable are recognized as assets and revenues when eligibility requirements are met.

GASB standards permit exercise of judgment when determining whether a government is general-purpose or special-purpose.