Question 1

Revenue for reimbursement grants may be recognized before expenditures take place, so long as the grant has been awarded.

Accepted Answer

A) True 
 B)False

Question 2

In December 2016, a donor to a college established a trust in which college receives $ 500,000 to be invested. The college receives $ 4,000 of the income per year until the donor dies. At that point, the assets revert to the donor's estate. The college estimates that the present value of the anticipated receipts from the trust amount to $ 120,000. How should this $ 120,000 be recorded in 2016, assuming

Accepted Answer

C
Explanation: Private sector colleges r

Question 3

Private colleges and universities recognize contribution revenue in the year in which the unconditional pledge is made.

Accepted Answer

A) True 
 B)False

Question 4

Public higher education institutions that report as special-purpose entities engaged in business-type activities only are still required to prepare a Management's Discussion and Analysis.

Accepted Answer

A) True 
 B)False

Question 5

Private colleges and universities are required to report net assets within the categories of unrestricted, restricted and net investment in capital assets.

Accepted Answer

A) True 
 B)False

Question 6

Private colleges and universities are required to prepare a Management's Discussion and Analysis.

Accepted Answer

A) True 
 B)False

Question 7

Sam Smith died, leaving a will that provided that $1,000,000 be transferred to a private not-for-profit college. The college is to invest the funds for 10 years and give $40,000 each year to the granddaughter. At the end of the 10 years, the $1,000,000 can be used for any purpose desired by the college. Which of the following is true?

Accepted Answer

A)  The college would record revenue in the amount of $1,000,000, increasing temporarily restricted net assets. 
B)  The college would record revenue in an amount equal to the $1,000,000 less the present value of the 10 payments to the granddaughter. 
C)  The college would record revenue in an amount equal to the present value of the 10 payments to the granddaughter. 
D)  The college would not record revenue for 10 years; then a revenue would be recorded, increasing unrestricted net assets. 
A)  The college would record revenue in the amount of $1,000,000, increasing temporarily restricted net assets. 
B)  The college would record revenue in an amount equal to the $1,000,000 less the present value of the 10 payments to the granddaughter. 
C)  The college would record revenue in an amount equal to the present value of the 10 payments to the granddaughter. 
D)  The college would not record revenue for 10 years; then a revenue would be recorded, increasing unrestricted net assets.

Question 8

Cash paid for interest is classified as an Operating activity in the Statement of Cash Flows for a public university.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not true regarding the Statement of Revenues, Expenses and Changes in Net Position for a public college?

Accepted Answer

A)  The accrual basis of accounting is used to measure revenues and expenses. 
B)  Encumbrances are recorded at the time purchase orders are issued. 
C)  Depreciation expense is recorded. 
D)  All of the above are true. 
A)  The accrual basis of accounting is used to measure revenues and expenses. 
B)  Encumbrances are recorded at the time purchase orders are issued. 
C)  Depreciation expense is recorded. 
D)  All of the above are true.

Question 10

Auxiliary enterprise activities represent revenues and expenses related to units of the college that provide services to students on a user fee basis.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

NACUBO has issued a position paper titled "Accounting and Reporting Scholarship Allowances to Tuition and Other Revenues by Higher Education" to address the issue of scholarship allowances. How are scholarships and allowances treated in the financial statements by colleges and universities?

Accepted Answer

If the tuition or fee reduction is an em

Question 13

Match between columns
                        Premises: Investor Owned
Private Not for Profit
Public University

Accepted Answer

The Answer of Net Investment in Capital Assets, Restricted Net is...

Question 14

Generally speaking, accounting standards for private colleges tend to recognize revenue when a split-interest agreement is created while accounting standards of public colleges defer recognition until it is realized.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  Public colleges and universities may choose to report in the same manner as private colleges and universities, using FASB standards. 
B)  Public colleges and universities may choose to report as special-purpose entities. 
C)  Both A and B are true. 
D)  Neither A nor B is true. 
A)  Public colleges and universities may choose to report in the same manner as private colleges and universities, using FASB standards. 
B)  Public colleges and universities may choose to report as special-purpose entities. 
C)  Both A and B are true. 
D)  Neither A nor B is true.

Question 16

Which of the following would not  be correct with respect to accounting for colleges and universities under the jurisdiction of the FASB?

Accepted Answer

A)  Contributed services should be recognized only 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 
B)  Unconditional pledges are deferred and recognized as revenue when collected. 
C)  Depreciation is recorded 
D)  Investments in stock with determinable fair values and all debt securities are reported at market value 
A)  Contributed services should be recognized only 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 
B)  Unconditional pledges are deferred and recognized as revenue when collected. 
C)  Depreciation is recorded 
D)  Investments in stock with determinable fair values and all debt securities are reported at market value

Question 17

In December 2016 a donor to a college established a trust in which college receives $ 5,000,000 to be invested. The donor's spouse is to receive $ 40,000 of the income per year for ten years. At that point, the assets and income revert to the college. The college estimates that the present value of the anticipated receipts from the trust amount to $ 4,800,000. How should this $ 4,800,000 be recorded in 2016, assuming

Accepted Answer

A
Explanation: Private sector colleges r

Question 18

Financial statements prepared for public colleges and universities present net position as: unrestricted, restricted, or net investment in capital assets.

Accepted Answer

A) True 
 B)False

Question 19

Scholarships tuition discounts) provided to students where no service is required:

Accepted Answer

A)  Are included in tuition revenue and recorded as an expense. 
B)  Are reported as a reduction of revenue by directly reducing the revenue account or increasing a contra- revenue account. 
C)  Are not included in tuition revenue but are included as an "other source". 
D)  Are reported as an adjustment to tuition revenue in the government-wide statements. 
A)  Are included in tuition revenue and recorded as an expense. 
B)  Are reported as a reduction of revenue by directly reducing the revenue account or increasing a contra- revenue account. 
C)  Are not included in tuition revenue but are included as an "other source". 
D)  Are reported as an adjustment to tuition revenue in the government-wide statements.

Question 20

Public colleges and universities follow __________ guidelines while private colleges and universities follow ________ guidelines

Accepted Answer

A)  GAO, FASB. 
B)  FASB, GAO. 
C)  GASB, FASB. 
D)  FASB, GASB. 
A)  GAO, FASB. 
B)  FASB, GAO. 
C)  GASB, FASB. 
D)  FASB, GASB.

Revenue for reimbursement grants may be recognized before expenditures take place, so long as the grant has been awarded.

Private colleges and universities recognize contribution revenue in the year in which the unconditional pledge is made.

Public higher education institutions that report as special-purpose entities engaged in business-type activities only are still required to prepare a Management's Discussion and Analysis.

Private colleges and universities are required to report net assets within the categories of unrestricted, restricted and net investment in capital assets.

Private colleges and universities are required to prepare a Management's Discussion and Analysis.

Cash paid for interest is classified as an Operating activity in the Statement of Cash Flows for a public university.

Which of the following is not true regarding the Statement of Revenues, Expenses and Changes in Net Position for a public college?

Auxiliary enterprise activities represent revenues and expenses related to units of the college that provide services to students on a user fee basis.

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

NACUBO has issued a position paper titled "Accounting and Reporting Scholarship Allowances to Tuition and Other Revenues by Higher Education" to address the issue of scholarship allowances. How are scholarships and allowances treated in the financial statements by colleges and universities?

Generally speaking, accounting standards for private colleges tend to recognize revenue when a split-interest agreement is created while accounting standards of public colleges defer recognition until it is realized.

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

Which of the following would not be correct with respect to accounting for colleges and universities under the jurisdiction of the FASB?

Financial statements prepared for public colleges and universities present net position as: unrestricted, restricted, or net investment in capital assets.

Scholarships tuition discounts) provided to students where no service is required:

Public colleges and universities follow __ guidelines while private colleges and universities follow guidelines

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 Funds, Interfund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 11: College and University Accounting

Revenue for reimbursement grants may be recognized before expenditures take place, so long as the grant has been awarded.

Private colleges and universities recognize contribution revenue in the year in which the unconditional pledge is made.

Public higher education institutions that report as special-purpose entities engaged in business-type activities only are still required to prepare a Management's Discussion and Analysis.

Private colleges and universities are required to report net assets within the categories of unrestricted, restricted and net investment in capital assets.

Private colleges and universities are required to prepare a Management's Discussion and Analysis.

Cash paid for interest is classified as an Operating activity in the Statement of Cash Flows for a public university.

Which of the following is not true regarding the Statement of Revenues, Expenses and Changes in Net Position for a public college?

Auxiliary enterprise activities represent revenues and expenses related to units of the college that provide services to students on a user fee basis.

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

NACUBO has issued a position paper titled "Accounting and Reporting Scholarship Allowances to Tuition and Other Revenues by Higher Education" to address the issue of scholarship allowances. How are scholarships and allowances treated in the financial statements by colleges and universities?

Generally speaking, accounting standards for private colleges tend to recognize revenue when a split-interest agreement is created while accounting standards of public colleges defer recognition until it is realized.

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

Which of the following would not be correct with respect to accounting for colleges and universities under the jurisdiction of the FASB?

Financial statements prepared for public colleges and universities present net position as: unrestricted, restricted, or net investment in capital assets.

Scholarships tuition discounts) provided to students where no service is required:

Public colleges and universities follow __________ guidelines while private colleges and universities follow ________ guidelines

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 Funds, Interfund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Public colleges and universities follow __ guidelines while private colleges and universities follow guidelines