Question 1

Ballard University,a private not-for-profit,billed four students for tuition and fees each in the amount of $ 8,000 each for fall semester. The University estimates 25% of tuition and fees will prove to be uncollectible. The University collected $ 10,000 as follows:
  Required:
 Prepare the journal entries to record the billing and subsequent collection or write-off for the transactions listed above.

Accepted Answer

The answer of Ballard University,a private not-for-profit,billed four students for...

Question 2

Identify the primary financial reporting body for each of the following forms of college or university
A.Private not-for-profit
B.For Profit - Investor owned
C.Public - government owned

Accepted Answer

The answer of Identify the primary financial reporting body for...

Question 3

Private colleges and universities recognize contribution revenue in the year in which the unconditional pledge is made.

Accepted Answer

A) True 
 B)False

Question 4

Under NACUBO guidelines,the current period provision for uncollectible accounts should be reported as:

Accepted Answer

A)  Bad debt expense. 
B)  Decreases in Temporarily Restricted Net Assets. 
C)  Reductions in revenue. 
D)  Transfers.

Question 5

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,revenues and expenses are reported at net amounts and gains and losses are reported at gross amounts.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would not be correct with respect to accounting for colleges and universities under the jurisdiction of the FASB?

Accepted Answer

A)  If both unrestricted and restricted resources are available for a restricted purpose, the FASB requires that the institution recognize the use of unrestricted resources first 
B)  Accrual accounting is used. Revenues and expenses are reported at gross amounts and gains and losses are reported net. 
C)  Expenses are reported by function, either in the statements or in the notes 
D)  If an institution decides not to capitalize museum and other inexhaustible collections, note disclosures are required regarding the collections

Question 7

Private,Not-for-profit Colleges and Universities and Investor-owned Schools follow FASB standards and adhere to the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 8

Private colleges and universities use the economic resources measurement focus and the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A)  Investor Owned. 
B)  Public University. 
C)  Private Not-for-Profit. 
D)  None of the above.

Question 10

When summer school classes at a university cover parts of two fiscal years,the revenues and expenses are

Accepted Answer

A)  All recognized in the second of the two years. 
B)  Apportioned to the two fiscal years. 
C)  Recognized in the year in which the term was predominantly conducted. 
D)  All recognized in the first of the two years.

Question 11

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,an institution may decide not to capitalize museum and other inexhaustible collections.

Accepted Answer

A) True 
 B)False

Question 12

An alum pledges $9,000 to Greystone College in 2015 on the condition that matching funds are raised. The matching funds are raised in 2016,how much revenue will Greystone College recognize in 2015?

Accepted Answer

A)  $ 0. 
B)  $3,000. 
C)  $6,000. 
D)  $9,000.

Question 13

How should the income earned by a private college's endowment be classified?

Accepted Answer

The answer of How should the income earned by a...

Question 14

According to NACUBO guidelines,what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30?

Accepted Answer

A)  Recognize the entire amount of revenues and expenses in the year in which the summer term is predominantly conducted. 
B)  Recognize the entire amount of revenues and expenses in the year in which the summer term began. 
C)  Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises. 
D)  Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred.

Question 15

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,expenses are reported by function,either in the statements or in the notes.

Accepted Answer

A) True 
 B)False

Question 16

With respect to colleges and universities,if a tuition or fee reduction is an employee benefit it should be treated as a compensation expense,rather than a discount.

Accepted Answer

A) True 
 B)False

Question 17

Private universities follow the authoritative standards of _____ and use the _____ basis of accounting.

Accepted Answer

A)  FASB, Accrual. 
B)  FASB, Modified-accrual. 
C)  GASB, Accrual. 
D)  GASB, Modified-accrual.

Question 18

Which of the following is an example of a temporarily restricted revenue?

Accepted Answer

A)  Tuition and fees. 
B)  Contribution for plant acquisition. 
C)  Auxiliary enterprises. 
D)  Quasi- Endowment.

Question 19

Under NACUBO guidelines,tuition waivers associated with athletic or academic scholarships should be reported as:

Accepted Answer

A)  Reductions in revenue. 
B)  Decreases in Temporarily Restricted Net Assets. 
C)  Transfers. 
D)  Expenses.

Question 20

FASB standards require private colleges and universities to present a Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Exam 11: College and University Accounting Private Institutions

Identify the primary financial reporting body for each of the following forms of college or university A.Private not-for-profit B.For Profit - Investor owned C.Public - government owned

Private colleges and universities recognize contribution revenue in the year in which the unconditional pledge is made.

Under NACUBO guidelines,the current period provision for uncollectible accounts should be reported as:

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,revenues and expenses are reported at net amounts and gains and losses are reported at gross amounts.

Which of the following would not be correct with respect to accounting for colleges and universities under the jurisdiction of the FASB?

Private,Not-for-profit Colleges and Universities and Investor-owned Schools follow FASB standards and adhere to the accrual basis of accounting.

Private colleges and universities use the economic resources measurement focus and 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.

When summer school classes at a university cover parts of two fiscal years,the revenues and expenses are

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,an institution may decide not to capitalize museum and other inexhaustible collections.

An alum pledges $9,000 to Greystone College in 2015 on the condition that matching funds are raised. The matching funds are raised in 2016,how much revenue will Greystone College recognize in 2015?

How should the income earned by a private college's endowment be classified?

According to NACUBO guidelines,what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30?

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,expenses are reported by function,either in the statements or in the notes.

With respect to colleges and universities,if a tuition or fee reduction is an employee benefit it should be treated as a compensation expense,rather than a discount.

Private universities follow the authoritative standards of _ and use the _ basis of accounting.

Which of the following is an example of a temporarily restricted revenue?

Under NACUBO guidelines,tuition waivers associated with athletic or academic scholarships should be reported as:

FASB standards require private colleges and universities to present a Statement of Cash Flows.