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

Which of the following is true regarding the Statement of Revenues,Expenses,and Changes in Net Position for a public college,operating as a special-purpose entity engaged only in business-type activities?

Revenue for reimbursement grants may be recognized before expenditures take place as long as the grant has been awarded.

What are the required parts of the annual financial report for special-purpose local governments engaged only in business-type activities?

The following data applies to the next two questions. •Northern University has a fiscal year end of June 30. •In June 2015, tuition and fees of $1,200,000 was assessed for the summer term that runs from June 1, 2015 through August 31, 2015. $1,200,000 was collected on June 1, 2015. -What is the journal entry on June 1 for Northern?

According to GASB Statement No.34,"General-purpose governments are thought to be those that offer more than one type of basic governmental service".

Public colleges who waive fees for graduate assistants must report tuition at the gross amount and expense the fees waived.

Which of the following is true regarding the financial statements for special-purpose entities?

According to the National Association of College and Business Officers,scholarship discounts and allowances paid by institutional funds,assuming that no services are provided by the recipients:

According to GASB Statement 33,with respect to public colleges and universities,pledges receivable are recognized as assets and revenues when eligibility requirements are met.

Special-purpose governments that are engaged in only one governmental-type activity are permitted to combine the fund and government-wide financial statements

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 tuition revenue?

Which of the following would not be considered a special-purpose government for financial reporting purposes?

Which of the following is not true regarding financial reporting of special-purpose entities?

What is the difference between a component unit and a special purpose local government?

Public colleges must report tuition income net of athletic scholarships.

The implementation guide for GASB Statement 34 provides a distinction by indicating that "general purpose governments are thought to be those that offer more than one type of basic governmental service.

Special-purpose governments that are engaged in both governmental and business-type activities are required to use the full reporting model including MD&A,government-wide and fund-basis statements,notes to the financial statements and RSI.

Revenue sources for public colleges include tuition and fees and donations. All other income is reported as unrelated business income.

GASB Statement 35 extends the provisions of GASB Statement 34 to both public and private colleges and universities.

A County could be either a general-purpose or a special purpose government.