Question 1

Reimbursement grants allow revenue to be recognized at the time the grant is made.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 5

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 6

City and county governments are not typically classified as special purpose governments.

Accepted Answer

A) True 
 B)False

Question 7

The following information applies to the next three questions:
Tuition and fees for the Northern University was assessed at $22,000,000. Scholarship allowances, for which no services are required, were $1,600,000 and graduate assistantships, for which services are required, were $1,000,000.
-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)  Assistantships and Fellowships Expense 1,000,000 Accounts receivable 1,000,000 
C)  Operating Revenue Deduction -Scholarship Allowances 1,000,000
Accounts Receivable 1,000,000 
D)  Operating Revenue Deduction -Scholarship Allowances 1,000,000
Deferred Revenues 1,000,000

Question 8

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.

Question 9

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 10

Assume a government is determined to be a special-purpose government engaged in business-type activities only. Which of the following financial statements would be required?

Accepted Answer

A)  Balance Sheet, Statement of Revenues, Expenditures, and Changes in fund Balances. 
B)  Statement of Net Position, Statement of Activities, Statement of Cash Flows. 
C)  Statement of Net Position, Statement of Revenues, Expenses, and Changes in Net Position, Statement of Cash Flows. 
D)  Statement of Net Position and Statement of Activities.

Question 11

Northwest State University had the following account balances as of June 30,2015. Debits are not distinguished from credits,so assume all accounts have a "normal" balance (i.e.cash is a debit and accounts payable a credit)
  Required:
 Prepare,in good form,a Statement of Net Position for Northwest State University as of June 30,2015.

Accepted Answer

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

Question 12

Financial reporting for a special-purpose local government depends on whether that government is engaged in governmental-type,business-type or fiduciary-type activities.

Accepted Answer

A) True 
 B)False

Question 13

Assume a government is a special-purpose government engaged in only one governmental activity. Which financial statements would be required?

Accepted Answer

A)  Government-wide statements only. 
B)  Statements combining the governmental funds and government-wide statements. 
C)  Both government-wide and governmental fund basis statements. 
D)  Either B or C above.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 that are engaged in a single governmental-type activity may combine the fund and government-wide financial statements. 
C)  Special-purpose governments engaged in only one business-type activity have to prepare government-wide financial statements. 
D)  Special-purpose governments must be stand-alone local governments.

Question 16

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.

Question 17

With respect to public colleges engaged in business-type activities,which of the following is not correct?

Accepted Answer

A)  GASB requirements for business-type activities of public colleges requires accrual account for debt, include accrual of interest and amortization of debt discount and premium. 
B)  Most public college foundations are required to be reported as discretely presented component units in the college's financial report. 
C)  Only amounts that are to paid by students and third-party payers can be shown as tuition and fee revenue net of any scholarship discounts and allowances. 
D)  All of the above are correct

Question 18

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

Question 19

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

Accepted Answer

A)  Non-operating revenue. 
B)  Operating revenue. 
C)  Non-expendable endowments. 
D)  None of the above.

Question 20

For financial reporting purposes,governmental health care entities,public school systems,other not-for-profit entities and public colleges and universities may be considered to be special-purpose entities.

Accepted Answer

A) True 
 B)False

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

Reimbursement grants allow revenue to be recognized at the time the grant is made.

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

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

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 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?

City and county governments are not typically classified as special purpose governments.

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

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.

Assume a government is determined to be a special-purpose government engaged in business-type activities only. Which of the following financial statements would be required?

Financial reporting for a special-purpose local government depends on whether that government is engaged in governmental-type,business-type or fiduciary-type activities.

Assume a government is a special-purpose government engaged in only one governmental activity. Which financial statements would be required?

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

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

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

With respect to public colleges engaged in business-type activities,which of the following is not correct?

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?

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

For financial reporting purposes,governmental health care entities,public school systems,other not-for-profit entities and public colleges and universities may be considered to be special-purpose entities.