Question 1

The following information applies to the next three questions:
Tuition and fees for the Northern University was assessed at $21,000,000. Scholarship allowances, for which no services are required, were $1,700,000 and graduate assistantships, for which services are required, were $900,000.
-What is the journal entry to record the graduate assistantships?

Accepted Answer

A)  Not recorded because it was deducted from tuition revenue before revenue it was recorded 
B)   
C)   
D)

Question 2

GASB categorizes general state appropriation as nonoperating revenue for public colleges and universities.

Accepted Answer

A) True 
 B)False

Question 3

Public colleges and universities that choose to report as special-purpose entities engaged only in business-type activities would have which of the following financial statements?

Accepted Answer

A)  Statement of Net Assets, Statement of Activities. 
B)  Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Net Assets. 
C)  Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Net Assets, Statement of Cash Flows. 
D)  None of the above.

Question 4

GASB requirements for business-type activities of public colleges requires accrual of interest and amortization of debt discount and premium.

Accepted Answer

A) True 
 B)False

Question 5

Special-purpose governments that are engaged in more than one governmental activity are permitted to combine the fund and government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  Cash received for interest is reported as an increase in cash flows from operating activities. 
B)  Cash paid for interest is reported as a decrease in cash flows from either noncapital or capital and related financing activities. 
C)  Both of the above are true. 
D)  Neither of the above is true

Question 7

Which of the following is an example of a special-purpose government?

Accepted Answer

A)  Village government 
B)  Park district 
C)  Township government 
D)  City government

Question 8

Most public colleges and universities choose to report as special purpose entities engaged in only business-type activities.

Accepted Answer

A) True 
 B)False

Question 9

The Implementation Guide for GASB Statement No.34 provides a distinction between general-purpose governments and special-purpose governments.Discuss the difference between the two.

Accepted Answer

The answer of The Implementation Guide for GASB Statement No.34...

Question 10

Public colleges who waive fees for graduate assistants must report tuition income net of the fees waived.

Accepted Answer

A) True 
 B)False

Question 11

Reimbursement grants require that the appropriate expenditure be made before the revenue can be recognized.

Accepted Answer

A) True 
 B)False

Question 12

What are the required parts of the annual financial report for special-purpose local governments engaged only in business-type activities?

Accepted Answer

The answer of What are the required parts of the...

Question 13

Special-purpose governments that are engaged in only one governmental-type activity are permitted to combine the fund and government-wide financial statements

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true with respect to public four-year higher education institutions (public colleges)?

Accepted Answer

A)  Sometimes, but not always public colleges are included as component units in the state CAFR 
B)  Revenue sources for public colleges include tuition and fees, state appropriations and donations. All other income is reported as unrelated business income. 
C)  No public colleges have the power to issue debt; it must be issued by the state as general obligation debt. 
D)  Public colleges may not choose to report as special-purpose entities engaged only in business-type activities.

Question 15

Special-purpose governments that are engaged in more than one governmental activity are required to use the full reporting model including MD&A,government-wide and fund-basis statements,notes to the financial statements and RSI.

Accepted Answer

A) True 
 B)False

Question 16

Public institutions of higher education are required to produce a Statement of Cash flows in addition to a Statement of Net Assets and a Statement of Revenues,Expenses,and Changes in Net Assets.

Accepted Answer

A) True 
 B)False

Question 17

Public colleges and universities account for revenue bonds using the accrual method to account for interest and amortization of premiums and discounts.

Accepted Answer

A) True 
 B)False

Question 18

Fees waived by the an educational institution in return for services to be provided by students are reported:

Accepted Answer

A)  As a reduction in tuition revenue by directly reducing the revenue account or a contra-revenue account. 
B)  As an adjustment to tuition revenue in the government-wide statements. 
C)  As an expense. 
D)  By deducting the waived fee from tuition revenue before it is recorded.

Question 19

General state appropriations are treated as nonoperating revenue of public colleges and universities.

Accepted Answer

A) True 
 B)False

Question 20

General-purpose governments are those that offer more than one type of basic governmental service,while special-purpose entities generally provide a limited,or single,set of programs or services.

Accepted Answer

A) True 
 B)False

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

GASB categorizes general state appropriation as nonoperating revenue for public colleges and universities.

Public colleges and universities that choose to report as special-purpose entities engaged only in business-type activities would have which of the following financial statements?

GASB requirements for business-type activities of public colleges requires accrual of interest and amortization of debt discount and premium.

Special-purpose governments that are engaged in more than one governmental activity are permitted to combine the fund and government-wide financial statements.

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

Which of the following is an example of a special-purpose government?

Most public colleges and universities choose to report as special purpose entities engaged in only business-type activities.

The Implementation Guide for GASB Statement No.34 provides a distinction between general-purpose governments and special-purpose governments.Discuss the difference between the two.

Public colleges who waive fees for graduate assistants must report tuition income net of the fees waived.

Reimbursement grants require that the appropriate expenditure be made before the revenue can be recognized.

What are the required parts of the annual financial report for special-purpose local governments engaged only in business-type activities?

Special-purpose governments that are engaged in only one governmental-type activity are permitted to combine the fund and government-wide financial statements

Which of the following is true with respect to public four-year higher education institutions (public colleges) ?

Special-purpose governments that are engaged in more than one governmental activity are required to use the full reporting model including MD&A,government-wide and fund-basis statements,notes to the financial statements and RSI.

Public institutions of higher education are required to produce a Statement of Cash flows in addition to a Statement of Net Assets and a Statement of Revenues,Expenses,and Changes in Net Assets.

Public colleges and universities account for revenue bonds using the accrual method to account for interest and amortization of premiums and discounts.

Fees waived by the an educational institution in return for services to be provided by students are reported:

General state appropriations are treated as nonoperating revenue of public colleges and universities.

General-purpose governments are those that offer more than one type of basic governmental service,while special-purpose entities generally provide a limited,or single,set of programs or services.