Exam 11: College and University Accounting

Southeastern State University, a public university, has chosen to report as a public university reporting as a special-purpose entity engaged only in business-type activities. Deferred Revenues were reported as of July 1, 2016 in the amount of $3,000,000. Record the following transactions related to revenue recognition for the year ended June 30, 2017. Include in the account titles the proper revenue classification operating revenues, nonoperating revenues, etc.:

Which of the following is true regarding the Statement of Cash Flows for a public college?

Private colleges and universities record depreciation expense and allocate it to functions.

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

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

Which of the following is true?

Tuition and fees for Northern University were assessed at $22,000,000. $ 1,600,000 of the amount due from students was later reduced by need based scholarships. Graduate assistantships and work-study stipends reduced the amounts collectible from student by an additional $ 1,000,000. -What is the journal entry to record tuition revenue?

Which of the following is true regarding the Statement of Cash Flows for a private college?

State appropriations for higher education institutions are to be reported as nonoperating revenues in the Statement of Revenues, Expenses, and Changes in Net Position for a public institution.

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

Pell Grants received by public colleges are classified as non-operating revenue.

Fees waived by an educational institution in return for services to be provided by students are reported:

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 pledges to support a program for a future year. Public colleges and universities recognize contribution revenue in the year in which the unconditional pledge is made.

Private, not-for-profit colleges and universities must have a Statement of Financial Position, Statement of Activities, Statement of Cash Flows, and Notes to the Financial Statements included in their financial report.

General state appropriations are treated as operating revenue of public colleges and universities.

A donor pledges to support a program for a future year. Private colleges and universities recognize contribution revenue in the year in which the unconditional pledge is made.

Which of the following is not true of a Statement of Activities prepared for a private college or university?

A private college had tuition and fees for the year ended June 30, 2017 in the amount of $45,000,000. Scholarships, for which no services were required, amounted to $4,800,000. Graduate assistantships, for which services were required, amounted to $2,300,000. The amount to be reported by the college for net tuition and fee revenue would be:

On December 1, 2016, a college received a pledge of support for the general endowment. Which of the following is true with respect to this pledge??