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

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?

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.