Which of the Following Would Not Be Correct with Respect

Multiple Choice

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

A) If both unrestricted and restricted resources are available for a restricted purpose, the FASB 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