Question 1

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

Accepted Answer

A)  The direct method must be used. 
B)  The statement is in the same format required for state and local governmental enterprise funds. 
C)  Both of the above are true. 
D)  Neither of the above is true.

Question 2

Southeastern State University has chosen to report as a public university reporting as a special-purpose entity engaged only in business-type activities.Deferred Revenues were reported as of July 1,2013 in the amount of $4,800,000.Record the following transactions related to revenue recognition for the year ended June 30,2014.Include in the account titles the proper revenue classification (operating revenues,nonoperating revenues,etc.):
1.Deferred revenues related to unearned revenues for the summer session,which ended in August 2013.
2.During the fiscal year ended June 30,2014,student tuition and fees were assessed in the amount of $68,000,000.Of that amount,$61,000,000 was collected in cash.Also,of that amount,$4,200,000 pertained to that portion of the 2014 summer session that took place after June 30,2014.
3.Student scholarships,for which no services were required,amounted to $3,500,000.Students applied these scholarships to their tuition bills at the beginning of the fall and spring semesters.
4.Student scholarships and fellowships,for which services were required,such as graduate assistantships,amounted to $2,200,000.These students also applied their scholarship and fellowship awards to their tuition bills at the beginning of each semester.
5.Auxiliary enterprise revenues amounted to $8,300,000.
6.The state appropriation for operations amounted to $33,000,000.
7.The state appropriation for capital outlay amounted to $12,700,000.
8.Gifts for endowment purposes amounted to $4,000,000.Gifts for unrestricted purposes amounted to $6,000,000.Interest income,all unrestricted,amounted to $600,000.

Accepted Answer

The answer of Southeastern State University has chosen to report...

Question 3

Northern State University had the following account balances for the year ended and as of June 30,2014.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 30,2014.

Accepted Answer

The answer of Northern State University had the following account...

Question 4

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

Accepted Answer

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

Question 5

Special-purpose governmental entities that are engaged in a single business activity are not required to prepare government-wide financial statements,but may issue only enterprise fund statements.

Accepted Answer

A) True 
 B)False

Question 6

A County could be either a general-purpose or a special purpose government.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  All student scholarship allowances should be reported as operating expenses. 
B)  An all-inclusive statement should be prepared, ending with the net assets at year-end. 
C)  Both of the above are true. 
D)  Neither of the above is true.

Question 8

Fire districts are examples of general-purpose state or local governments:

Accepted Answer

A) True 
 B)False

Question 9

The following data applies to the next two questions.
•Northern University has a fiscal year end of June 30.
•In June 2014, tuition and fees of $1,200,000 was assessed for the summer term that runs from June 1, 2014 through August 31, 2014. $1,200,000 was collected on June 1, 2014.
-What is the journal entry on June 1 for Northern?

Accepted Answer

A)   
B)   
C)   
D)

Question 10

What are the criteria outlined in GASB Statement 39:
 Determining Whether Certain Organizations Are Component Units for requiring public college foundations to be reported as discretely presented components in the college's financial reports?

Accepted Answer

The answer of What are the criteria outlined in GASB...

Question 11

Which of the following statements is true of a special-purpose government?

Accepted Answer

A)  Special-purpose governments that are engaged in more than one governmental-type activities can combine the fund and government-wide financial statements. 
B)  Special-purpose governments engaged in only one business-type activity have to prepare government-wide financial statements. 
C)  Special-purpose governments that are engaged in a single governmental-type activity may combine the fund and government-wide financial statements. 
D)  GASB Statement 39: Determining Whether Certain Organizations Are Component Units applies only to public educational institutions.

Question 12

Public colleges must depreciate infrastructure and may not use the modified approach.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  Special-purpose entities that are engaged only in one governmental activity may combine government-wide and governmental fund statements. 
B)  Special-purpose entities that are engaged in fiduciary activities only prepare the statements required for fiduciary funds (Statement of Fiduciary Net Assets, Statement of Changes in Fiduciary Net Assets). 
C)  Both of the above. 
D)  Neither of the above.

Question 14

Public higher education institutions typically report as special-purpose entities engaged in governmental and business-type activities or in governmental-type activities only.

Accepted Answer

A) True 
 B)False

Question 15

Special purpose governments engaged only in fiduciary-type activities are required to prepare all of the following except:

Accepted Answer

A)  Statement of Fiduciary Net Assets 
B)  Statement of Cash Flows 
C)  Statement of Changes in Fiduciary Net Assets 
D)  Management Discussion and Analysis

Question 16

GASB Statement 35 extends the provisions of GASB Statement 34 to both public and private colleges and universities.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following groups would not be considered a component unit of a special-purpose government,for the purposes of applying GASB Statement 39: Determining Whether Certain Organizations Are Component Units?

Accepted Answer

A)  General governments. 
B)  Booster clubs. 
C)  Museums. 
D)  Health care entities.

Question 18

Which of the following statements is (are)true regarding public colleges and universities choosing to report as special-purpose entities engaged in business-type activities only?

Accepted Answer

A)  Endowments would be reported in the Statement of Net Assets as Net Assets Restricted-Nonexpendable. 
B)  Capital appropriations from state governments are shown, in the Statement of Revenues, Expenses, and Changes in Net Assets, as a category separate from revenues. 
C)  Both of the above. 
D)  Neither of the above.

Question 19

The implementation guide for GASB Statement 34 provides a distinction by indicating that "general purpose governments are thought to be those that offer more than one type of basic governmental service.

Accepted Answer

A) True 
 B)False

Question 20

Public colleges who waive fees for graduate assistants must report tuition at the gross amount and expense the fees waived.

Accepted Answer

A) True 
 B)False

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

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

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

Special-purpose governmental entities that are engaged in a single business activity are not required to prepare government-wide financial statements,but may issue only enterprise fund statements.

A County could be either a general-purpose or a special purpose government.

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

Fire districts are examples of general-purpose state or local governments:

What are the criteria outlined in GASB Statement 39: Determining Whether Certain Organizations Are Component Units for requiring public college foundations to be reported as discretely presented components in the college's financial reports?

Which of the following statements is true of a special-purpose government?

Public colleges must depreciate infrastructure and may not use the modified approach.

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

Public higher education institutions typically report as special-purpose entities engaged in governmental and business-type activities or in governmental-type activities only.

Special purpose governments engaged only in fiduciary-type activities are required to prepare all of the following except:

GASB Statement 35 extends the provisions of GASB Statement 34 to both public and private colleges and universities.

Which of the following groups would not be considered a component unit of a special-purpose government,for the purposes of applying GASB Statement 39: Determining Whether Certain Organizations Are Component Units?

Which of the following statements is (are) true regarding public colleges and universities choosing to report as special-purpose entities engaged in business-type activities only?

The implementation guide for GASB Statement 34 provides a distinction by indicating that "general purpose governments are thought to be those that offer more than one type of basic governmental service.

Public colleges who waive fees for graduate assistants must report tuition at the gross amount and expense the fees waived.