Question 1

Which of the following would not be an example of an unrestricted inflow for a private college or university?

Accepted Answer

A)  Tuition and fees 
B)  Governmental appropriations 
C)  Sales and services of auxiliary enterprises 
D)  Split interest agreements 
A)  Tuition and fees 
B)  Governmental appropriations 
C)  Sales and services of auxiliary enterprises 
D)  Split interest agreements

Question 2

College and universities treat uncollectible accounts as bad debt expense.

Accepted Answer

A) True 
 B)False

Question 3

Investment income on Endowments held by private colleges and classified as permanently restricted net assets should be recorded as an increase in:

Accepted Answer

A)  Unrestricted net assets. 
B)  Temporarily restricted net assets. 
C)  Permanently restricted net assets. 
D)  Any of the above, depending on the terms of the trust agreement. 
A)  Unrestricted net assets. 
B)  Temporarily restricted net assets. 
C)  Permanently restricted net assets. 
D)  Any of the above, depending on the terms of the trust agreement.

Question 4

The private college would:

Accepted Answer

A)  Record contribution revenue in the amount of $50,548 in 2011. 
B)  Record contribution revenue in the amount of $50,548 in 2012. 
C)  Record contribution revenue in the amount of $12,000 in each of the years 2012, 2013, 2014, 2015 and 2016. 
D)  None of the above 
A)  Record contribution revenue in the amount of $50,548 in 2011. 
B)  Record contribution revenue in the amount of $50,548 in 2012. 
C)  Record contribution revenue in the amount of $12,000 in each of the years 2012, 2013, 2014, 2015 and 2016. 
D)  None of the above

Question 5

Investor-owned proprietary schools are subject to the standards issued by the GASB.

Accepted Answer

A) True 
 B)False

Question 6

What accounts appear in the equity section of the balance sheet for a college,assuming the college is?

Accepted Answer

A.Net Assets: Unrestricted,Res

Question 7

Which of the following types of college/university would have these components of the Financial Report?

Accepted Answer

A)  Investor Owned. 
B)  Public University. 
C)  Private Not-for-Profit. 
D)  None of the above. 
A)  Investor Owned. 
B)  Public University. 
C)  Private Not-for-Profit. 
D)  None of the above.

Question 8

A private college received a grant of $40,000 with purpose restrictions in 2011.In 2012 funds were expended for the purpose outlined in the gift; however,it was not possible to determine whether the restricted funds or unrestricted funds were used.The presumption should be:

Accepted Answer

A)  The restricted funds would have been used first. 
B)  The unrestricted funds would have been used first. 
C)  The restricted funds and unrestricted funds would have been used equally. 
D)  The restricted funds and unrestricted funds would have been used, based on a weighted average of the amounts. 
A)  The restricted funds would have been used first. 
B)  The unrestricted funds would have been used first. 
C)  The restricted funds and unrestricted funds would have been used equally. 
D)  The restricted funds and unrestricted funds would have been used, based on a weighted average of the amounts.

Question 9

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 GASB 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 GASB 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 10

If a donor contributes funds to be invested for a set number of years and then become available for expenditure,the funds would be considered as a(n)

Accepted Answer

A)  Quasi-endowment. 
B)  Term endowment. 
C)  Endowment. 
D)  None of the above. 
A)  Quasi-endowment. 
B)  Term endowment. 
C)  Endowment. 
D)  None of the above.

Question 11

Public Colleges and Universities are subject to standards issued by the GASB.

Accepted Answer

A) True 
 B)False

Question 12

Private colleges and universities record depreciation expense.

Accepted Answer

A) True 
 B)False

Question 13

Give 2 examples of unrestricted inflows,restricted inflows and permanently restricted inflows for a private college or university.

Accepted Answer

Unrestricted inflows: Temporar

Question 14

According to NACUBO guidelines,what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30?

Accepted Answer

A)  Recognize the entire amount of revenues and expenses in the year in which the term is predominantly conducted. 
B)  Recognize the entire amount of revenues and expenses in the year in which the term began. 
C)  Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred. 
D)  Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises. 
A)  Recognize the entire amount of revenues and expenses in the year in which the term is predominantly conducted. 
B)  Recognize the entire amount of revenues and expenses in the year in which the term began. 
C)  Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred. 
D)  Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises.

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

NACUBO guidelines treat estimates of uncollectible accounts as reductions in revenue.

Accepted Answer

A) True 
 B)False

Question 18

Identify three types of restrictions placed on temporarily restricted net assets of a private sector college or university and outline the accounting requirements for each type.

Accepted Answer

(a)Time Restricted: Contributions restri

Question 19

With respect to colleges and universities,academic or athletic tuition waivers are accounted for as reductions in revenue.

Accepted Answer

A) True 
 B)False

Question 20

Plant acquired by a private college with either unrestricted or restricted sources must be recorded initially as temporarily restricted and then reclassified in accordance with the depreciation schedule.

Accepted Answer

A) True 
 B)False

Which of the following would not be an example of an unrestricted inflow for a private college or university?

College and universities treat uncollectible accounts as bad debt expense.

Investment income on Endowments held by private colleges and classified as permanently restricted net assets should be recorded as an increase in:

The private college would:

Investor-owned proprietary schools are subject to the standards issued by the GASB.

What accounts appear in the equity section of the balance sheet for a college,assuming the college is?

Which of the following types of college/university would have these components of the Financial Report?

A private college received a grant of $40,000 with purpose restrictions in 2011.In 2012 funds were expended for the purpose outlined in the gift; however,it was not possible to determine whether the restricted funds or unrestricted funds were used.The presumption should be:

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

If a donor contributes funds to be invested for a set number of years and then become available for expenditure,the funds would be considered as a(n)

Public Colleges and Universities are subject to standards issued by the GASB.

Private colleges and universities record depreciation expense.

Give 2 examples of unrestricted inflows,restricted inflows and permanently restricted inflows for a private college or university.

According to NACUBO guidelines,what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30?

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:

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

NACUBO guidelines treat estimates of uncollectible accounts as reductions in revenue.

Identify three types of restrictions placed on temporarily restricted net assets of a private sector college or university and outline the accounting requirements for each type.

With respect to colleges and universities,academic or athletic tuition waivers are accounted for as reductions in revenue.

Plant acquired by a private college with either unrestricted or restricted sources must be recorded initially as temporarily restricted and then reclassified in accordance with the depreciation schedule.

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

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Exam 11: College and University Accounting

Which of the following would not be an example of an unrestricted inflow for a private college or university?

College and universities treat uncollectible accounts as bad debt expense.

Investment income on Endowments held by private colleges and classified as permanently restricted net assets should be recorded as an increase in:

The private college would:

Investor-owned proprietary schools are subject to the standards issued by the GASB.

What accounts appear in the equity section of the balance sheet for a college,assuming the college is?

Which of the following types of college/university would have these components of the Financial Report?

A private college received a grant of $40,000 with purpose restrictions in 2011.In 2012 funds were expended for the purpose outlined in the gift; however,it was not possible to determine whether the restricted funds or unrestricted funds were used.The presumption should be:

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

If a donor contributes funds to be invested for a set number of years and then become available for expenditure,the funds would be considered as a(n)

Public Colleges and Universities are subject to standards issued by the GASB.

Private colleges and universities record depreciation expense.

Give 2 examples of unrestricted inflows,restricted inflows and permanently restricted inflows for a private college or university.

According to NACUBO guidelines,what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30?

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:

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

NACUBO guidelines treat estimates of uncollectible accounts as reductions in revenue.

Identify three types of restrictions placed on temporarily restricted net assets of a private sector college or university and outline the accounting requirements for each type.

With respect to colleges and universities,academic or athletic tuition waivers are accounted for as reductions in revenue.

Plant acquired by a private college with either unrestricted or restricted sources must be recorded initially as temporarily restricted and then reclassified in accordance with the depreciation schedule.

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