Question 1

Private colleges and universities are subject to the standards issued by the FASB.

Accepted Answer

A) True 
 B)False  True

Question 2

The AICPA Audit Guide:
 Not-for-Profit Organizations applies to private colleges and universities.

Accepted Answer

A) True 
 B)False  True

Question 3

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)  Contributed services should be recognized only 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 
B)  Multiyear pledges are recorded as restricted revenue and receivable for the gross amount of the pledge when the pledge is made 
C)  Depreciation is recorded 
D)  Investments in stock with determinable fair values and all debt securities are reported at market value 
A)  Contributed services should be recognized only 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 
B)  Multiyear pledges are recorded as restricted revenue and receivable for the gross amount of the pledge when the pledge is made 
C)  Depreciation is recorded 
D)  Investments in stock with determinable fair values and all debt securities are reported at market value B

Question 4

A tuition waiver for a student who works as a graduate assistant is treated as a reduction in revenue.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Bad debt expense. 
B)  A reductions in revenue. 
C)  Transfers. 
D)  None of the above. 
A)  Bad debt expense. 
B)  A reductions in revenue. 
C)  Transfers. 
D)  None of the above.

Question 6

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

Accepted Answer

A)  Expenses. 
B)  Reductions in revenue. 
C)  Transfers. 
D)  None of the above. 
A)  Expenses. 
B)  Reductions in revenue. 
C)  Transfers. 
D)  None of the above.

Question 7

A government owned college follows whose standards?

Accepted Answer

A)  FASB because GASB doesn't have standards for universities. 
B)  GASB. 
C)  AICPA. 
D)  None of the above. 
A)  FASB because GASB doesn't have standards for universities. 
B)  GASB. 
C)  AICPA. 
D)  None of the above.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following student tuition or fee reductions should be listed as a reduction in revenue?

Accepted Answer

A)  Graduate Assistantships. 
B)  Athletic or Academic Scholarships. 
C)  Work-Study Programs. 
D)  None of the above. 
A)  Graduate Assistantships. 
B)  Athletic or Academic Scholarships. 
C)  Work-Study Programs. 
D)  None of the above.

Question 10

An unconditional pledge of support received by a private college is recorded as revenue when the promise to give is unconditional.

Accepted Answer

A) True 
 B)False

Question 11

The NACUBO Financial Accounting and Reporting Manual treats estimates of uncollectible accounts as:

Accepted Answer

A)  Bad debt expense 
B)  A reduction in tuition and fee revenue 
C)  Either bad debt expense or a reduction in tuition and fee revenue as long as the policy is consistently applied 
D)  None of the above; colleges and universities must use the direct write off method 
A)  Bad debt expense 
B)  A reduction in tuition and fee revenue 
C)  Either bad debt expense or a reduction in tuition and fee revenue as long as the policy is consistently applied 
D)  None of the above; colleges and universities must use the direct write off method

Question 12

What is the distinction between discounts and expenses for private colleges and universities?

Accepted Answer

Revenues are reported net of d

Question 13

The equity section of the balance sheet for private,not-for-profit colleges and universities includes which of the following designations?

Accepted Answer

A)  Unrestricted Net Assets, Temporarily Restricted Net Assets, and Permanently Restricted Net Assets. 
B)  Paid in Capital and Retained Earnings. 
C)  Net Assets Invested in Capital Assets, net of related Debt; Restricted Net Assets; and Unrestricted Net Assets. 
D)  None of the above. 
A)  Unrestricted Net Assets, Temporarily Restricted Net Assets, and Permanently Restricted Net Assets. 
B)  Paid in Capital and Retained Earnings. 
C)  Net Assets Invested in Capital Assets, net of related Debt; Restricted Net Assets; and Unrestricted Net Assets. 
D)  None of the above.

Question 14

What is the basis of accounting for a private college or university and what are the principal sources of reporting standards?

Accepted Answer

Private colleges and universities use ac

Question 15

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

Accepted Answer

How the income of endowments is classifi

Question 16

Which of the following would not be considered a split-interest agreement,according to the Not-for-Profit Guide?

Accepted Answer

A)  Charitable remainder trusts. 
B)  Permanent income-sharing agreements. 
C)  Charitable gift annuities. 
D)  Pooled (life) income funds. 
A)  Charitable remainder trusts. 
B)  Permanent income-sharing agreements. 
C)  Charitable gift annuities. 
D)  Pooled (life) income funds.

Question 17

Private,Not-for-Profit Colleges and Universities must have Statement of Financial Position,Statement of Activities,Statement of Cash Flows,and Notes to the Financial Statements included in their financial report.

Accepted Answer

A) True 
 B)False

Question 18

When a private college is the recipient of a perpetual trust held by a third party,the initial contribution revenue is recorded in the permanently restricted net asset class,and income received from the trust is recorded as either unrestricted or temporarily restricted investment income,depending on the trust agreement.

Accepted Answer

A) True 
 B)False

Question 19

Student scholarships for which no service was required were applied to student accounts in the amount of $3,000.What is the journal entry to record this event?

Accepted Answer

A)  Debit: Tuition discount-Unrestricted-Student aid $3,000 Credit: Accounts Receivable $3,000. 
B)  Debit: Scholarship Expense $3,000 Credit: Accounts Receivable $3,000. 
C)  Debit: Tuition waiver $3,000 Credit: Loan to student $3,000. 
D)  None of the above. 
A)  Debit: Tuition discount-Unrestricted-Student aid $3,000 Credit: Accounts Receivable $3,000. 
B)  Debit: Scholarship Expense $3,000 Credit: Accounts Receivable $3,000. 
C)  Debit: Tuition waiver $3,000 Credit: Loan to student $3,000. 
D)  None of the above.

Question 20

According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,Contributed services should be recognized only 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

Private colleges and universities are subject to the standards issued by the FASB.

The AICPA Audit Guide: Not-for-Profit Organizations applies to private colleges and universities.

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

A tuition waiver for a student who works as a graduate assistant is treated as a reduction in revenue.

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

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

A government owned college follows whose standards?

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

Which of the following student tuition or fee reductions should be listed as a reduction in revenue?

An unconditional pledge of support received by a private college is recorded as revenue when the promise to give is unconditional.

The NACUBO Financial Accounting and Reporting Manual treats estimates of uncollectible accounts as:

What is the distinction between discounts and expenses for private colleges and universities?

The equity section of the balance sheet for private,not-for-profit colleges and universities includes which of the following designations?

What is the basis of accounting for a private college or university and what are the principal sources of reporting standards?

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

Which of the following would not be considered a split-interest agreement,according to the Not-for-Profit Guide?

Private,Not-for-Profit Colleges and Universities must have Statement of Financial Position,Statement of Activities,Statement of Cash Flows,and Notes to the Financial Statements included in their financial report.

Student scholarships for which no service was required were applied to student accounts in the amount of $3,000.What is the journal entry to record this event?

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

Advanced Topics for State and Local Governments

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 colleges and universities are subject to the standards issued by the FASB.

The AICPA Audit Guide: Not-for-Profit Organizations applies to private colleges and universities.

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

A tuition waiver for a student who works as a graduate assistant is treated as a reduction in revenue.

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

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

A government owned college follows whose standards?

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

Which of the following student tuition or fee reductions should be listed as a reduction in revenue?

An unconditional pledge of support received by a private college is recorded as revenue when the promise to give is unconditional.

The NACUBO Financial Accounting and Reporting Manual treats estimates of uncollectible accounts as:

What is the distinction between discounts and expenses for private colleges and universities?

The equity section of the balance sheet for private,not-for-profit colleges and universities includes which of the following designations?

What is the basis of accounting for a private college or university and what are the principal sources of reporting standards?

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

Which of the following would not be considered a split-interest agreement,according to the Not-for-Profit Guide?

Private,Not-for-Profit Colleges and Universities must have Statement of Financial Position,Statement of Activities,Statement of Cash Flows,and Notes to the Financial Statements included in their financial report.

Student scholarships for which no service was required were applied to student accounts in the amount of $3,000.What is the journal entry to record this event?

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

Advanced Topics for State and Local Governments

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