Question 1

A Pooled life income fund is a type of split-interest agreement.

Accepted Answer

A) True 
 B)False  True

Question 2

In addition to a Statement of Financial Position and a Statement of Activities,a private college or university is required to present:

Accepted Answer

A)  A Statement of Functional Expense. 
B)  A Statement of Cash Flows. 
C)  Both (a) and (b). 
D)  Neither (a) nor (b). 
A)  A Statement of Functional Expense. 
B)  A Statement of Cash Flows. 
C)  Both (a) and (b). 
D)  Neither (a) nor (b). B

Question 3

Tuition revenue for summer classes spanning two fiscal periods must be allocated on a pro-rata basis.

Accepted Answer

A) True 
 B)False  True

Question 4

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 
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 5

Private colleges and universities use the same accounting and reporting standards as other private not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

College and universities treat uncollectible student accounts as reductions in revenue,rather than bad debt expense.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

Private colleges and universities use encumbrances and report using the modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 10

Funds that are restricted for a certain number of years and then released are considered to be term endowments and are classified as temporarily restricted funds by private colleges and universities.

Accepted Answer

A) True 
 B)False

Question 11

MATCHING
-Match the Type of Entity with the Equity sections of the Balance Sheet/ Statement of Net Assets (Match the Letter and Number)
A.Investor Owned
B.Public University
C.Private Not for Profit
1.Unrestricted,Temporary Restricted net assets and Permanently Restricted net assets
2.Paid in Capital,Retained Earnings
3.Net Assets Invested in Capital Assets,Net of Related Debt,Restricted Net Assets,Unrestricted Net Assets.

Accepted Answer

The answer of MATCHING
-Match the Type of Entity with the...

Question 12

A donor made a cash contribution of $75,000 to a private college for the purpose of acquiring a building.The private college properly recorded the gift of cash as a temporarily restricted revenue.When the building is acquired,the college should:

Accepted Answer

A)  Record the building as unrestricted. 
B)  Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets. 
C)  Record the plant as either unrestricted or temporarily restricted, as long as a consistent policy is followed. 
D)  Record the building as permanently restricted. 
A)  Record the building as unrestricted. 
B)  Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets. 
C)  Record the plant as either unrestricted or temporarily restricted, as long as a consistent policy is followed. 
D)  Record the building as permanently restricted.

Question 13

College and universities treat uncollectible student accounts as bad debt expense.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

How should the following revenues be reported by a private college?
-$1,500 state appropriations,
-$5,600 in unrestricted contributions,
-$600 unrestricted investment income on endowment investments,
-$11,600 sales of services by auxiliary enterprises.
Unrestricted Restricted

Accepted Answer

A)  19,300 0 
B)  17,800 1,500 
C)  17,200 2,100 
D)  5,600 13,700 
A)  19,300 0 
B)  17,800 1,500 
C)  17,200 2,100 
D)  5,600 13,700

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Unless acquired with restricted funds,plant acquired by a private college must be recorded as unrestricted.

Accepted Answer

A) True 
 B)False

Question 18

In 2014,a major drug company agreed to give a not-for-profit private college $1,700,000 to perform testing of a new drug.An advance payment of $700,000 was received in 2014.The college was to receive $4,000 per individual test.In 2014,the college completed 100 tests.How much revenue should the college report for 2014?

Accepted Answer

A)  $ - 0 - . 
B)  $ 400,000. 
C)  $ 700,000. 
D)  $1,700,000. 
A)  $ - 0 - . 
B)  $ 400,000. 
C)  $ 700,000. 
D)  $1,700,000.

Question 19

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,contributed services should be recognized when the services create or enhance nonfinancial assets or require specialized skills,are provided by an individual possessing those skills,and would typically be purchased if not provided by donation.

Accepted Answer

A) True 
 B)False

Question 20

Under FASB standards,true endowments are classified as Permanently Restricted Net Assets.

Accepted Answer

A) True 
 B)False

A Pooled life income fund is a type of split-interest agreement.

In addition to a Statement of Financial Position and a Statement of Activities,a private college or university is required to present:

Tuition revenue for summer classes spanning two fiscal periods must be allocated on a pro-rata basis.

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

Private colleges and universities use the same accounting and reporting standards as other private not-for-profit organizations.

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

College and universities treat uncollectible student accounts as reductions in revenue,rather than bad debt expense.

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

Private colleges and universities use encumbrances and report using the modified accrual basis of accounting.

Funds that are restricted for a certain number of years and then released are considered to be term endowments and are classified as temporarily restricted funds by private colleges and universities.

A donor made a cash contribution of $75,000 to a private college for the purpose of acquiring a building.The private college properly recorded the gift of cash as a temporarily restricted revenue.When the building is acquired,the college should:

College and universities treat uncollectible student accounts as bad debt expense.

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

How should the following revenues be reported by a private college? -$1,500 state appropriations, -$5,600 in unrestricted contributions, -$600 unrestricted investment income on endowment investments, -$11,600 sales of services by auxiliary enterprises. Unrestricted Restricted

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

Unless acquired with restricted funds,plant acquired by a private college must be recorded as unrestricted.

Under FASB standards,true endowments are classified as Permanently Restricted Net Assets.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

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

Accounting for Private Not-For-Profit Organizations

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 11: College and University Accounting Private Institutions

A Pooled life income fund is a type of split-interest agreement.

In addition to a Statement of Financial Position and a Statement of Activities,a private college or university is required to present:

Tuition revenue for summer classes spanning two fiscal periods must be allocated on a pro-rata basis.

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

Private colleges and universities use the same accounting and reporting standards as other private not-for-profit organizations.

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

College and universities treat uncollectible student accounts as reductions in revenue,rather than bad debt expense.

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

Private colleges and universities use encumbrances and report using the modified accrual basis of accounting.

Funds that are restricted for a certain number of years and then released are considered to be term endowments and are classified as temporarily restricted funds by private colleges and universities.

A donor made a cash contribution of $75,000 to a private college for the purpose of acquiring a building.The private college properly recorded the gift of cash as a temporarily restricted revenue.When the building is acquired,the college should:

College and universities treat uncollectible student accounts as bad debt expense.

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

How should the following revenues be reported by a private college? -$1,500 state appropriations, -$5,600 in unrestricted contributions, -$600 unrestricted investment income on endowment investments, -$11,600 sales of services by auxiliary enterprises. Unrestricted Restricted

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

Unless acquired with restricted funds,plant acquired by a private college must be recorded as unrestricted.

Under FASB standards,true endowments are classified as Permanently Restricted Net Assets.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

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

Accounting for Private Not-For-Profit Organizations

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters