Question 1

With respect to public colleges and universities,expenses are reported by:

Accepted Answer

A)   Function.
B)   Object classification.
C)   Department.
D)   Academic vs. non academic components. B

Question 2

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

Accepted Answer

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

Question 3

Public colleges and universities are required to report as special purpose entities engaged in both governmental- and business-type activities because they receive tax dollars and charge user fees.

Accepted Answer

A) True 
 B)False  False

Question 4

According to GASB Statement 34,governmental activities are generally financed through taxes,intergovernmental revenues and other nonexchange revenues.

Accepted Answer

A) True 
 B)False

Question 5

No public colleges have the power to issue debt; it must be issued by the state as general obligation debt.

Accepted Answer

A) True 
 B)False

Question 6

Special-purpose governments that are engaged in both governmental and business-type activities or in more than one governmental activity are required to include which items in its financial reporting?

Accepted Answer

The answer of Special-purpose governments that are engaged in both...

Question 7

Which of the following is true regarding financial reporting of special-purpose entities?

Accepted Answer

A)   Special purpose entities might include park districts, school districts, and public colleges and universities.
B)   Special-purpose entities, in some cases, have more limited reporting requirements than general-purpose entities.
C)   Both of the above are true.
D)   Neither of the above is true.

Question 8

A public college had tuition and fees for the year ended June 30,2014 in the amount of $45,000,000.Scholarships,for which no services were required,amounted to $2,500,000.Graduate assistantships,for which services were required,amounted to $2,300,000.The amount to be reported by the college for net tuition and fee revenue would be:

Accepted Answer

A)   $40,200,000.
B)   $42,700,000.
C)   $42,500,000.
D)   $45,000,000.

Question 9

Which of the following is true regarding financial reporting of special-purpose entities?

Accepted Answer

A)   Special-purpose entities might be included as component units in a primary government's financial statements.
B)   Special-purpose entities that engage in a single governmental activity may prepare statements that combine government-wide and governmental fund statements.
C)   Both of the above are true.
D)   Neither of the above is true.

Question 10

Governmental health care entities,public school systems,and museums are commonly accounted for as special-purpose governments.

Accepted Answer

A) True 
 B)False

Question 11

Answer the following related to accounting and financial reporting for public colleges and universities:
a.What choices exist for financial reporting by public colleges and universities,according to GASB Statement 35?
b.Indicate the contents required for a financial report for those public colleges and universities that choose to report as special-purpose entities engaged only in business-type activities.

Accepted Answer

The answer of Answer the following related to accounting and...

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

Indicate the financial reporting rules for each of the following special-purpose entities (which category of special-purpose entity),and indicate the financial statements that would be required:
a.A township that assesses property for taxation,provides road maintenance,and provides welfare assistance.
b.A fire protection district that engages in protection of property in unincorporated areas from fires.
c.An independent tollway authority,not the component unit of any other government.
d.An independent statewide pension plan.
e.A public college.

Accepted Answer

The answer of Indicate the financial reporting rules for each...

Question 14

GASB requires that educational institutions who engage in business-type activities and issue debt account for the debt by:

Accepted Answer

A)   Recording the debt service as an expenditure as it becomes due.
B)   Recording the interest as an expense when it is due and payable.
C)   Recording the principal net of any premium or discount when the debt is issued and expense the interest as it is paid.
D)   Recording the interest expense on the accrual basis, including amortizing the premium or discount, if applicable.

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

State appropriations for higher education institutions are to be reported as nonoperating revenues in the Statement of Revenues,Expenses,and Changes in Net Assets.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true regarding the Statement of Revenues,Expenses,and Changes in Net Assets for a public (government-owned)college?

Accepted Answer

A)   The accrual basis of accounting is used to determine the change in net assets.
B)   Auxiliary enterprise activities represent revenues and expenses related to units of the college that provide services to students on a user fee basis.
C)   Both of the above are true.
D)   Neither of the above is true.

Question 19

Public colleges must report tuition income net of athletic scholarships.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true regarding the Statement of Revenues,Expenses,and Changes in Net Assets for a public college?

Accepted Answer

A)   Tuition revenues are reported net of tuition waivers when those waivers require service on the part of the recipient student.
B)   Depreciation expense is recognized.
C)   Both of the above are true.
D)   Neither of the above is true.

Exam 9: Accounting for Special-Purpose Entities, Including Public Colleges and Universities

With respect to public colleges and universities,expenses are reported by:

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

Public colleges and universities are required to report as special purpose entities engaged in both governmental- and business-type activities because they receive tax dollars and charge user fees.

According to GASB Statement 34,governmental activities are generally financed through taxes,intergovernmental revenues and other nonexchange revenues.

No public colleges have the power to issue debt; it must be issued by the state as general obligation debt.

Special-purpose governments that are engaged in both governmental and business-type activities or in more than one governmental activity are required to include which items in its financial reporting?

Which of the following is true regarding financial reporting of special-purpose entities?

Which of the following is true regarding financial reporting of special-purpose entities?

Governmental health care entities,public school systems,and museums are commonly accounted for as special-purpose governments.

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.

GASB requires that educational institutions who engage in business-type activities and issue debt account for the debt by:

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.

State appropriations for higher education institutions are to be reported as nonoperating revenues in the Statement of Revenues,Expenses,and Changes in Net Assets.

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

Which of the following is true regarding the Statement of Revenues,Expenses,and Changes in Net Assets for a public (government-owned) college?

Public colleges must report tuition income net of athletic scholarships.

Which of the following is true regarding the Statement of Revenues,Expenses,and Changes in Net Assets for a public college?