Exam 11: College and University Accounting

Western State University, a public university, had the following account balances for the year ended and as of June 30, 2017. Debits are not distinguished from credits, so assume all accounts have a "normal" balance. Additions to permanent endowments Auxiliary enterprise revenue Capital grants and gifts Public service experse Auxiliary enterprise expense Federal grarits and contracts revenue Gifts Interest on capital-related debt Investrnent income Net Position, beginning of year Academic support expense Student services expense Institutional support expense Instructional expense Student financial aid contra revenue) Research expense State and local grants and contracts revenue State appropriation for operations State appropriations for capital additions Student tuition and fee revenue 1,500,000 5,100,000 1,260,000 2,300,000 2,410,000 1,250,000 940,000 800,000 380,000 19,600,000 3,400,000 3,600,000 4,100,000 7,200,000 700,000 750,000 950,000 5,900,000 1,340,000 7,800,000 Required: Prepare, in good form, a Statement of Revenues, Expenses, and Changes in Net Position for Western State University for the year ended June 30, 2017.

FASB standards require private not-for-profit colleges and universities to present a Statement of Cash Flows.

A tuition waiver for a student who works as a graduate assistant is treated as compensation expense.

Which of the following would be true regarding the Statement of Net Position for a public college?

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

Union Seminary, a private not-for-profit college, uses the fund basis of accounting for internal record keeping. Presented below is the fully adjusted 12/31/2017 balance sheet for Union, prepared using funds and account groups. The following are fund descriptions: Operating Fund - the fund used for transactions not falling within the definition of other funds. There are no restrictions on these resources. Memorial Fund - Used to account for resources donated from outside parties for specific capital additions Endowment Fund - Assets received from an outside donor for permanent investment, only the earnings may be expended. Scholarship Fund - Cash set aside by the Seminary's governing board for use as scholarships and student aid. Fixed Assets Account Group - A record of the Seminary's fixed assets and long-term debt. Required: Prepare a Statement of Financial Position following the guidelines provided in FASB Statements 116 and 117 for private not-for-profits and assuming Union does not classify plant assets as temporarily restricted.

A college borrows money to construct a new biology building. Where will the interest paid on this debt appear in the Statement of Cash Flows, assuming

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

For private colleges and universities, reclassifications of temporarily restricted and unrestricted net assets could be made:

Higher education institutions that report as engaged in business-type activities only should report the same residual equity classifications Net investment in capital assets, restricted, unrestricted as are reported in the government-wide statement of Net Position.

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

With respect to public colleges and universities, state appropriations for operating purposes are shown as:

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

Public colleges are required to report residual equity in the following categories:

Public colleges and universities are subject to the standards issued by the GASB.

Public colleges and universities are primarily subject to financial reporting standards issued by:

With respect to public colleges, which of the following is not correct?

Private, not-for-profit colleges and universities and investor-owned schools follow FASB standards and adhere to the accrual basis of accounting.

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

Private colleges and universities use the same accounting and reporting standards as other private not-for-profit organizations.