Question 1

NACUBO guidelines require both revenues and expenses for split summer sessions to be apportioned to the two fiscal years.

Accepted Answer

A) True 
 B)False

Question 2

The three classes of net assets required to be presented by a private college or university are:

Accepted Answer

A)  Permanently Restricted, Temporarily Restricted, and Unrestricted. 
B)  Reserved, Unreserved, and Undesignated. 
C)  Invested in Capital Assets net of Related Debt, Restricted, and Unrestricted. 
D)  Educational and General, and Auxiliary Enterprises.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is false?

Accepted Answer

A)  A contribution is recorded as revenue when the promise to give is unconditional. 
B)  Fixed assets acquired with either unrestricted or restricted sources may ONLY be recorded initially as temporarily restricted and then reclassified in accordance with the depreciation schedule. 
C)  Museum and other inexhaustible collections may or may not be capitalized and recorded in the accounts. 
D)  If services are required for student aid (i.e. Graduate assistantships), the revenue account is shown at the gross amount, and an expense is charged.

Question 5

The private college would:

Accepted Answer

A)  Record interest revenue of $3,033 in 2011. 
B)  Record interest revenue of $3,033 in 2012. 
C)  Record contribution revenue of $3,033 in 2011. 
D)  Record contribution revenue of $3,033 in 2012.

Question 6

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 7

An acceptable alternative to the Statement of Activities for a private college or university is to present a Statement of Unrestricted Revenues,Expenses and Other Changes in Unrestricted Net Assets and a Statement of Changes in Net Assets.

Accepted Answer

A) True 
 B)False

Question 8

With respect to colleges and universities,estimates of uncollectible accounts are accounted for as reductions in revenue rather than bad debt expense.

Accepted Answer

A) True 
 B)False

Question 9

Museum and other inexhaustible collections held by a private college may or may not be capitalized and recorded in the accounts of a private college.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a required statement for a private college?

Accepted Answer

A)  Statement of Changes in Fund Balance. 
B)  Statement of Revenues and Expenditures. 
C)  Budgetary Comparison Statement. 
D)  None of the above is a required statement.

Question 11

A Charitable gift annuity is a split-interest agreement.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  Expenses may be unrestricted or temporarily restricted depending on donor intent. 
B)  A Statement of Unrestricted Revenues, Expenses and Other Changes in Unrestricted Net Assets and a Statement of Changes in Net Assets may be presented instead of a Statement of Activities. 
C)  The Statement of Cash Flows must use the direct method. 
D)  None of the above is true.

Question 13

Private colleges and universities recognize revenue from a pledge in the year in which the money is received.

Accepted Answer

A) True 
 B)False

Question 14

Public colleges and universities are subject to the standards issued by the GASB.

Accepted Answer

A) True 
 B)False

Question 15

Under FASB standards,quasi-endowments are classified as Temporarily Restricted Net Assets.

Accepted Answer

A) True 
 B)False

Question 16

Academic or athletic scholarships that do not require service to the college or university are considered scholarship allowances and treated as reductions in revenue.

Accepted Answer

A) True 
 B)False

Question 17

Tuition revenue for summer classes spanning two fiscal periods must be recorded in the period when the drop date passes and refunds are no longer an option.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a split-interest agreement?

Accepted Answer

A)  Charitable remainder trust. 
B)  Charitable lead trust. 
C)  Pooled life income fund. 
D)  Research grant program.

Question 19

Inflows from self-supporting university operations,known as auxiliary enterprises,are restricted as to use.

Accepted Answer

A) True 
 B)False

Question 20

Private colleges and universities use the same accounting and reporting standards as public colleges and universities.

Accepted Answer

A) True 
 B)False

Exam 11: College and University Accounting

NACUBO guidelines require both revenues and expenses for split summer sessions to be apportioned to the two fiscal years.

The three classes of net assets required to be presented by a private college or university are:

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

Which of the following statements is false?

The private college would:

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

An acceptable alternative to the Statement of Activities for a private college or university is to present a Statement of Unrestricted Revenues,Expenses and Other Changes in Unrestricted Net Assets and a Statement of Changes in Net Assets.

With respect to colleges and universities,estimates of uncollectible accounts are accounted for as reductions in revenue rather than bad debt expense.

Museum and other inexhaustible collections held by a private college may or may not be capitalized and recorded in the accounts of a private college.

Which of the following is a required statement for a private college?

A Charitable gift annuity is a split-interest agreement.

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

Private colleges and universities recognize revenue from a pledge in the year in which the money is received.

Public colleges and universities are subject to the standards issued by the GASB.

Under FASB standards,quasi-endowments are classified as Temporarily Restricted Net Assets.

Academic or athletic scholarships that do not require service to the college or university are considered scholarship allowances and treated as reductions in revenue.

Tuition revenue for summer classes spanning two fiscal periods must be recorded in the period when the drop date passes and refunds are no longer an option.

Which of the following is not a split-interest agreement?

Inflows from self-supporting university operations,known as auxiliary enterprises,are restricted as to use.

Private colleges and universities use the same accounting and reporting standards as public colleges and universities.