Question 1

Which of the following receipts may properly be accounted for as an increase in unrestricted net assets?

Accepted Answer

A) Student tuition and fees. 
B) Gift from an alumnus for a new college of business building. 
C) Federal grant for genetic research. 
D) Acceptance of assets,the income from which will be paid to the donor. 
A) Student tuition and fees. 
B) Gift from an alumnus for a new college of business building. 
C) Federal grant for genetic research. 
D) Acceptance of assets,the income from which will be paid to the donor. A

Question 2

Which of the following is not a condition that would permit a public college or private college or university to avoid accounting recognition of the value of its collections of art,historical treasures,and similar assets?

Accepted Answer

A) Public colleges and universities are required by GASB standards to capitalize and report all collections. 
B) The assets are held for public exhibition,education,or research in furtherance of public service rather than financial gain. 
C) The assets are protected,kept unencumbered,cared for,and preserved. 
D) The assets are subject to an organizational policy that ensures the proceeds of sales of collectible assets are used to acquire other items for collections. 
A) Public colleges and universities are required by GASB standards to capitalize and report all collections. 
B) The assets are held for public exhibition,education,or research in furtherance of public service rather than financial gain. 
C) The assets are protected,kept unencumbered,cared for,and preserved. 
D) The assets are subject to an organizational policy that ensures the proceeds of sales of collectible assets are used to acquire other items for collections. A

Question 3

Revenues and expenses of both public and private colleges and universities are accounted for on the accrual basis.

Accepted Answer

A) True 
 B)False  True

Question 4

Public colleges and universities that use business-type reporting must present segment information in the notes to the financial statements.

Accepted Answer

A) True 
 B)False

Question 5

The following are key terms in Chapter 16 that relate to accounting for colleges and universities:
A.Term endowments
B.Gifts in kind
C.Annuity agreements
D.Collections
E.Pooled life income agreements
F.Spending rate
G.Total return
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.

Accepted Answer

The answer of The following are key terms in Chapter...

Question 6

FASB standards applicable to private colleges and universities require that their financial statements

Accepted Answer

A) Provide separate columns for each fund group. 
B) Include a statement of changes in fund balances. 
C) Provide aggregated financial information on an entity-wide basis. 
D) Include a statement of cash flows prepared using the direct method. 
A) Provide separate columns for each fund group. 
B) Include a statement of changes in fund balances. 
C) Provide aggregated financial information on an entity-wide basis. 
D) Include a statement of cash flows prepared using the direct method.

Question 7

An unrestricted gift that is subsequently designated by the board of regents of a public university for agricultural research would be recorded as an unrestricted contribution.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a typical classification of a functional expense in a college or university?

Accepted Answer

A) Recreation and culture. 
B) Public safety. 
C) Institutional support. 
D) Depreciation. 
A) Recreation and culture. 
B) Public safety. 
C) Institutional support. 
D) Depreciation.

Question 9

Which of the following relationships indicates that River State University,a public university,would report an independent not-for-profit fund-raising foundation as a component unit?

Accepted Answer

A) The foundation raises and holds economic resources that are entirely or almost entirely for the direct benefit of River State University,but the university can only access the resources if and when the foundation's board of trustees approves a transfer. 
B) The foundation raises and holds economic resources that are entirely or almost entirely for the direct benefit of River State University,the university has the ability to access the resources at its discretion,and the resources are significant to the university. 
C) The foundation raises and holds economic resources that are entirely or almost entirely for direct benefit to River State University as well as a group of other universities in the state,but no individual university can access the resources until the foundation's board of trustees approves a transfer. 
D) The foundation raises and holds economic resources that are entirely or almost entirely for the direct benefit of River State University and the university has the ability to access the resources at its discretion; however,the dollar amount of such resources are not significant to the university. 
A) The foundation raises and holds economic resources that are entirely or almost entirely for the direct benefit of River State University,but the university can only access the resources if and when the foundation's board of trustees approves a transfer. 
B) The foundation raises and holds economic resources that are entirely or almost entirely for the direct benefit of River State University,the university has the ability to access the resources at its discretion,and the resources are significant to the university. 
C) The foundation raises and holds economic resources that are entirely or almost entirely for direct benefit to River State University as well as a group of other universities in the state,but no individual university can access the resources until the foundation's board of trustees approves a transfer. 
D) The foundation raises and holds economic resources that are entirely or almost entirely for the direct benefit of River State University and the university has the ability to access the resources at its discretion; however,the dollar amount of such resources are not significant to the university.

Question 10

Which of the following measures may be useful to decision makers evaluating the financial condition of a college or university?

Accepted Answer

A) Number of graduates. 
B) Current ratio. 
C) Faculty productivity. 
D) Graduation rate. 
A) Number of graduates. 
B) Current ratio. 
C) Faculty productivity. 
D) Graduation rate.

Question 11

Refunds of college or university tuition or fees should be recorded as expenses in the period in which they are made.Do you agree? Why or why not?

Accepted Answer

Disagree.Both private and publ

Question 12

If a public university receives $1,000,000 in fiscal year 2011 as a grant restricted for a specific research project and makes expenditures amounting to $400,000 during fiscal year 2011 properly chargeable to the grant,how much should be reported as revenues in fiscal year 2011? Explain.

Accepted Answer

Assuming the grant is considered a nonex

Question 13

Describe the treatment of a not-for-profit,nongovernmental foundation that is related to a public university under GASB standards.

Accepted Answer

If an institutionally related foundation

Question 14

"Tuition and fees should be recorded as revenues of colleges and universities even though they must be reported net of fee remissions,scholarships,and fellowships." Do you agree or disagree with this statement? If you disagree,explain how fee remissions,scholarships,and fellowships should be recorded.

Accepted Answer

Agree.The AICPA Audit and Accounting Gui

Question 15

The cost of professors' salaries would normally be recorded in which functional area?

Accepted Answer

A) Student services. 
B) Instruction. 
C) Service. 
D) Institutional support. 
A) Student services. 
B) Instruction. 
C) Service. 
D) Institutional support.

Question 16

What type of college or university must report expenses by functional classification?

Accepted Answer

A) Both private and public colleges and universities. 
B) Private colleges and universities. 
C) Public colleges and universities. 
D) Neither private nor public colleges and universities. 
A) Both private and public colleges and universities. 
B) Private colleges and universities. 
C) Public colleges and universities. 
D) Neither private nor public colleges and universities.

Question 17

Show entries in general journal form for the following transactions for a certain private university.
1)The university was awarded a federal grant in the amount of $1,800,000 to be used for a specified research project (determined to be a nonexchange transaction).During the year the entire $1,800,000 was received and expenses for the specified project totaled $1,000,000.
2)Ira Beaker,a renowned chemist and alumnus,donated $7,000,000 to be used for the construction of new chemistry building to be named Beaker Hall.The gift is to be paid to the university in equal installments over a two-year period; the sum for the current year was received in cash.
3)Cash outlays of $2,750,000 were made during the year for construction in progress on the new chemistry building.Other construction projects completed during the year,also financed by temporarily restricted resources,amounted to $1,500,000 for buildings and $500,000 for improvements other than buildings.There was no debt financing used for these projects.
4)During the year bonds with a face value of $180,000 were retired.

Accepted Answer

The answer of Show entries in general journal form for...

Question 18

Are public and private colleges and universities required to report depreciation expense in their financial statements?

Accepted Answer

A) Public: No; Private: No 
B) Public: Yes; Private: Yes 
C) Public: Yes; Private: No 
D) Public: No; Private: Yes 
A) Public: No; Private: No 
B) Public: Yes; Private: Yes 
C) Public: Yes; Private: No 
D) Public: No; Private: Yes

Question 19

Which of the following statements usually will not be included in the annual financial report of a governmentally owned public university engaged only in business-type activities?

Accepted Answer

A) Statement of cash flows. 
B) Statement of net assets. 
C) Statement of activities. 
D) Statement of revenues,expenses,and changes in net assets. 
A) Statement of cash flows. 
B) Statement of net assets. 
C) Statement of activities. 
D) Statement of revenues,expenses,and changes in net assets.

Question 20

Describe why and how a public college or university reports on segments of its operations? Are private colleges and universities also required to do the same.

Accepted Answer

Institutions of higher learning that fol

Which of the following receipts may properly be accounted for as an increase in unrestricted net assets?

Which of the following is not a condition that would permit a public college or private college or university to avoid accounting recognition of the value of its collections of art,historical treasures,and similar assets?

Revenues and expenses of both public and private colleges and universities are accounted for on the accrual basis.

Public colleges and universities that use business-type reporting must present segment information in the notes to the financial statements.

FASB standards applicable to private colleges and universities require that their financial statements

An unrestricted gift that is subsequently designated by the board of regents of a public university for agricultural research would be recorded as an unrestricted contribution.

Which of the following is a typical classification of a functional expense in a college or university?

Which of the following relationships indicates that River State University,a public university,would report an independent not-for-profit fund-raising foundation as a component unit?

Which of the following measures may be useful to decision makers evaluating the financial condition of a college or university?

Refunds of college or university tuition or fees should be recorded as expenses in the period in which they are made.Do you agree? Why or why not?

If a public university receives $1,000,000 in fiscal year 2011 as a grant restricted for a specific research project and makes expenditures amounting to $400,000 during fiscal year 2011 properly chargeable to the grant,how much should be reported as revenues in fiscal year 2011? Explain.

Describe the treatment of a not-for-profit,nongovernmental foundation that is related to a public university under GASB standards.

The cost of professors' salaries would normally be recorded in which functional area?

What type of college or university must report expenses by functional classification?

Are public and private colleges and universities required to report depreciation expense in their financial statements?

Which of the following statements usually will not be included in the annual financial report of a governmentally owned public university engaged only in business-type activities?

Describe why and how a public college or university reports on segments of its operations? Are private colleges and universities also required to do the same.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations Regulatory, taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting and Reporting for the Federal Government

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Exam 16: Accounting for Health Care Organizations

Which of the following receipts may properly be accounted for as an increase in unrestricted net assets?

Which of the following is not a condition that would permit a public college or private college or university to avoid accounting recognition of the value of its collections of art,historical treasures,and similar assets?

Revenues and expenses of both public and private colleges and universities are accounted for on the accrual basis.

Public colleges and universities that use business-type reporting must present segment information in the notes to the financial statements.

FASB standards applicable to private colleges and universities require that their financial statements

An unrestricted gift that is subsequently designated by the board of regents of a public university for agricultural research would be recorded as an unrestricted contribution.

Which of the following is a typical classification of a functional expense in a college or university?

Which of the following relationships indicates that River State University,a public university,would report an independent not-for-profit fund-raising foundation as a component unit?

Which of the following measures may be useful to decision makers evaluating the financial condition of a college or university?

Refunds of college or university tuition or fees should be recorded as expenses in the period in which they are made.Do you agree? Why or why not?

If a public university receives $1,000,000 in fiscal year 2011 as a grant restricted for a specific research project and makes expenditures amounting to $400,000 during fiscal year 2011 properly chargeable to the grant,how much should be reported as revenues in fiscal year 2011? Explain.

Describe the treatment of a not-for-profit,nongovernmental foundation that is related to a public university under GASB standards.

The cost of professors' salaries would normally be recorded in which functional area?

What type of college or university must report expenses by functional classification?

Are public and private colleges and universities required to report depreciation expense in their financial statements?

Which of the following statements usually will not be included in the annual financial report of a governmentally owned public university engaged only in business-type activities?

Describe why and how a public college or university reports on segments of its operations? Are private colleges and universities also required to do the same.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations Regulatory, taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting and Reporting for the Federal Government

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