Question 1

Northern State University had the following account balances for the year ended and as of June 30,2012.Debits are not distinguished from credits,so assume all accounts have a "normal" balance.
  Required:
 Prepare,in good form,a Statement of Revenues,Expenses,and Changes in Net Assets for Northern State University for the year ended June 30,2012.

Accepted Answer

The answer of Northern State University had the following account...

Question 2

Special-purpose governmental entities that are engaged in a single governmental-type activity only are required to prepare only the statements required for governmental fund basis financial statements.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true with respect to public four-year higher education institutions (public colleges)?

Accepted Answer

A)  Sometimes, but not always public colleges are included as component units in the state CAFR. 
B)  Revenue sources for public colleges include tuition and fees, state appropriations and donations. All other income is reported as unrelated business income. 
C)  Public colleges do not have the power to issue debt; it must be issued by the state as general obligation debt. 
D)  Public colleges may not choose to report as special-purpose entities engaged only in business-type activities.

Question 4

Fees waived by the an educational institution in return for services to be provided are accounted for:

Accepted Answer

A)  As a reduction in tuition revenue by directly reducing the revenue account or a contra-revenue account. 
B)  As an adjustment to tuition revenue in the government-wide statements. 
C)  As included in tuition revenue and expensed. 
D)  By deducting the waived fee from tuition revenue before it is recorded.

Question 5

Higher education institutions that report as special purpose entities engaged in business-type activities only should report the same net asset classifications (invested in capital assets,net of related debt,restricted,unrestricted)as are reported in the government-wide statement of net assets.

Accepted Answer

A) True 
 B)False

Question 6

Special purpose governments may be stand alone local governments or may be component units of other governments that are issuing separate reports.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not required for a special-purpose local government engaged in only fiduciary type activities?

Accepted Answer

A)  Statement of Fiduciary Net Assets 
B)  Statement of Revenues, Expenses, and Changes in Fiduciary Net Assets 
C)  Notes to the Financial Statements 
D)  Required Supplementary Information other than MD&A

Question 8

The Implementation Guide for GASB Statement No.34 provides a distinction between general-purpose governments and special-purpose governments.Discuss the difference between the two.

Accepted Answer

The answer of The Implementation Guide for GASB Statement No.34...

Question 9

According to the National Association of College and Business Officers,scholarship discounts and allowances paid by institutional funds:

Accepted Answer

A)  Are included in tuition revenue and recorded as an expense. 
B)  Are not included in tuition revenue but are included as an "other source". 
C)  Are reported as a reduction of revenue by directly reducing the revenue account or a contra- revenue account. 
D)  Are reported as an adjustment to tuition revenue in the government-wide statements.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true regarding accounting and financial reporting for public colleges and universities?

Accepted Answer

A)  Public colleges and universities may choose to report in the same manner as private colleges and universities, using FASB standards. 
B)  Public colleges and universities may choose to report as special-purpose entities engaged in both governmental and business-type activities. 
C)  Both of the above. 
D)  None of the above.

Question 12

Most public colleges and universities choose to report as special purpose entities engaged in only business-type activities.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would be true regarding the Statement of Net Assets for a public college reporting as a special purpose entity engaged in business type activities only?

Accepted Answer

A)  A classified statement is required, separating current and long-term assets and liabilities. 
B)  The two net asset categories are restricted and unrestricted. 
C)  Both of the above are true. 
D)  Neither of the above is true.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

The answer of What are the required parts of the...

Question 16

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

Accepted Answer

A)  Full accrual accounting is used to measure revenues and expenses. 
B)  Grants are treated as operating revenue and contributions as non-operating revenue. 
C)  Both of the above are true. 
D)  Neither of the above is true.

Question 17

City government and library districts are examples of general -purpose state or local governments.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  The direct method must be used. 
B)  The statement is in the same format required for state and local governmental enterprise funds. 
C)  Both of the above are true. 
D)  Neither of the above is true.

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

GASB standards permit exercise of judgment when determining whether a government is general-purpose or special-purpose.

Accepted Answer

A) True 
 B)False

Exam 9: Advanced Topics for State and Local Governments

Special-purpose governmental entities that are engaged in a single governmental-type activity only are required to prepare only the statements required for governmental fund basis financial statements.

Which of the following is true with respect to public four-year higher education institutions (public colleges) ?

Fees waived by the an educational institution in return for services to be provided are accounted for:

Higher education institutions that report as special purpose entities engaged in business-type activities only should report the same net asset classifications (invested in capital assets,net of related debt,restricted,unrestricted)as are reported in the government-wide statement of net assets.

Special purpose governments may be stand alone local governments or may be component units of other governments that are issuing separate reports.

Which of the following is not required for a special-purpose local government engaged in only fiduciary type activities?

The Implementation Guide for GASB Statement No.34 provides a distinction between general-purpose governments and special-purpose governments.Discuss the difference between the two.

According to the National Association of College and Business Officers,scholarship discounts and allowances paid by institutional funds:

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

Which of the following statements is true regarding accounting and financial reporting for public colleges and universities?

Most public colleges and universities choose to report as special purpose entities engaged in only business-type activities.

Which of the following would be true regarding the Statement of Net Assets for a public college reporting as a special purpose entity engaged in business type activities only?

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

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

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

City government and library districts are examples of general -purpose state or local governments.

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

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.

GASB standards permit exercise of judgment when determining whether a government is general-purpose or special-purpose.