Question 1

For a public C&U that presents a statement of revenues, expenses, and changes in net assets, unrealized gains on investments are reported in the nonoperating revenues and expenses section.

Accepted Answer

Unrealized gains on investments are typically reported in the nonoperating revenues and expenses section because they are not related to the primary, operational activities of the institution.

Question 2

For a public C&U that presents a statement of revenues, expenses, and changes in net assets, unrestricted gifts received are reported in the nonoperating revenues and expenses section.

Accepted Answer

Unrestricted gifts are considered nonoperating revenues for public colleges and universities, as they are not directly related to the primary operations of the institution.

Question 3

For a public C&U that presents a statement of revenues, expenses, and changes in net assets, temporarily restricted gifts received are reported in the nonoperating revenues and expenses section.

Accepted Answer

Temporarily restricted gifts are reported in the nonoperating revenues section because they are not part of the core, ongoing operational activities of the institution but are instead designated for specific purposes by the donor and thus recognized separately from operating revenues.

Question 4

For a public C&U that presents a statement of revenues, expenses, and changes in net assets, permanently restricted gifts received are reported in the nonoperating revenues and expenses section.

Accepted Answer

Public colleges and universities typically follow GASB standards, which do not use the terms "permanently restricted." Instead, they report such gifts as part of nonoperating revenues, but the terminology differs from FASB standards used by private institutions.

Question 5

Regarding public C&U reporting, a cash flow statement may or may not have to be presented.

Accepted Answer

The requirement to present a cash flow statement in public Comprehensive Annual Financial Reports (CAFR) varies by jurisdiction and the specific accounting standards applied, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).

Question 6

Regarding public C&U reporting, one of the categories in the cash flow statement is a cash flows from investing in noncapital assets.

Accepted Answer

In the cash flow statement, the categories typically include cash flows from operating activities, investing activities (which may involve capital assets but not specifically noncapital assets), and financing activities. Noncapital assets are not a standard category for cash flow reporting.

Question 7

Regarding public C&U reporting, all public C&Us must present a management discussion and analysis (MDA) in their annual report.

Accepted Answer

Public colleges and universities (C&Us) are required to include a Management's Discussion and Analysis (MD&A) in their annual financial reports as part of the financial reporting requirements to provide an overview of the financial condition and to discuss the results of operations.

Question 8

Regarding public C&U reporting, all public C&Us must present the applicable required supplementary information (RSI) in their annual report.

Accepted Answer

Public colleges and universities (C&Us) are required to present the applicable Required Supplementary Information (RSI) in their annual financial reports as per accounting standards and guidelines to ensure transparency and provide a comprehensive view of their financial position.

Question 9

_____	Which of the following financial statement titles is used by public HCOs?
A) Statement of revenues and expenses.
B) Statement of revenues and expenses and other changes.
C) Statement of revenues and expenditures.
D) Statement of income.
E) Statement of operations.

Accepted Answer

The answer of _____	Which of the following financial statement titles...

Question 10

_____	Which of the following statements is not presented by public HCOs?
A) Balance sheet.
B) Statement of operations.
C) Statement of changes in fund balances.
D) Statement of cash flows.
E) None of the above.

Accepted Answer

All of the statements listed (A: Balance sheet, B: Statement of operations, C: Statement of changes in fund balances, and D: Statement of cash flows) are typically presented by public Healthcare Organizations (HCOs) as part of their financial reporting.

Question 11

_____	For public HCOs, which of the following manners of reporting is required in the operating statement for amounts released from restrictions?
A) Present as a separate line item above the operating profit or loss line.
B) Present as a separate line item below the operating profit or loss line.
C) Present by natural classification above the operating profit or loss line.
D) Present by natural classification below the operating profit or loss line.
E) Do not present in the operating statement.

Accepted Answer

The answer of _____	For public HCOs, which of the following...

Question 12

_____	For public HCOs, which of the following items are shown above the operating profit or loss line in a statement of operations?
A) Equity transfers to or from an entity that controls the HCO.
B) Contributions of unrestricted cash.
C) Contributions of restricted cash.
D) Contributions of unrestricted capital assets.
E) None of the above.

Accepted Answer

Contributions of unrestricted cash are typically shown above the operating profit or loss line in a statement of operations for public healthcare organizations (HCOs).

Question 13

_____	For public HCOs, which of the following items are shown below the operating profit or loss line in the statement of operations?
A) Grants.
B) Interest expense.
C) Bad debt expense.
D) Gift shop and parking lot receipts.
E) None of the above.

Accepted Answer

The answer of _____	For public HCOs, which of the following...

Question 14

_____	For public HCOs, which of the following items are shown below the operating profit or loss line in the statement of operations?
A) Amounts released from restrictions.
B) Contributions of unrestricted cash.
C) Contributions of restricted cash.
D) Contributions of unrestricted fixed assets.
E) None of the above.

Accepted Answer

The answer of _____	For public HCOs, which of the following...

Question 15

_____	For public HCOs, which of the following items are shown below the operating profit or loss line in the statement of operations?
A) Interest income.
B) Interest expense.
C) Interest income and interest expense.
D) Contributions of unrestricted cash.
E) None of the above.

Accepted Answer

The answer of _____	For public HCOs, which of the following...

Question 16

_____	For public HCOs, which of the following items is reported separately in the statement of changes in fund balances, rather than in the statement of operations?
A) Contributions of unrestricted cash.
B) Change in unrealized gains and losses on available-for-sale securities.
C) Equity transfers to an entity that controls the HCO.
D) Extraordinary items.
E) None of the above.

Accepted Answer

For public Healthcare Organizations (HCOs), all the items listed (A through D) are typically reported in the statement of operations, not separately in the statement of changes in fund balances. Contributions of unrestricted cash, changes in unrealized gains and losses on available-for-sale securities, equity transfers, and extraordinary items are all operational activities that affect the organization's net income or loss for the period.

Question 17

_____For public HCOs, which of the following items is not reported in the statement of operations?
A)Contributions of unrestricted long-lived assets.
B)Change in net unrealized gains (losses) on available-for-sale securities.
C)Imputed value of charity care provided.
D)Investment income (interest and dividends).
E)None of the above.

Accepted Answer

The imputed value of charity care provided is not reported in the statement of operations for public Healthcare Organizations (HCOs). This is because it does not represent actual revenue earned or expenses incurred in the operations of the HCO.

Question 18

_____	For public HCOs, which of the following items is reported in both the statement of operations and the statement of changes in fund balances?
A) Investment income (interest and dividends).
B) Endowment funds received.
C) Change in unrealized gains and losses on available-for-sale securities.
D) Depreciation and amortization.
E) None of the above.

Accepted Answer

Change in unrealized gains and losses on available-for-sale securities is reported in both the statement of operations and the statement of changes in fund balances for public healthcare organizations (HCOs). This reflects the changes in the fair value of securities that are not yet realized through sale.

Question 19

_____	For a public C&U engaged only in governmental activities, which of the following financial statements is required?
A) Only fund financial statements.
B) Only government-wide financial statements.
C) Both fund financial statements and government-wide financial statements.
D) Only the financial statements required by Enterprise Funds.

Accepted Answer

Colleges and universities (C&U) engaged only in governmental activities are required to prepare both fund financial statements and government-wide financial statements. This approach provides a comprehensive view of the entity's financial activities and position, aligning with the reporting requirements for governmental entities.

Question 20

_____ For a public C&U engaged in both governmental activities, and business-type activities, which of the following financial statements is required? A) Only fund financial statements. B) Only government-wide financial statements. C) Both fund financial statements and government-wide financial statements. D) Only the financial statements required by Enterprise Funds.

Accepted Answer

Public colleges and universities engaged in both governmental and business-type activities are required to prepare both fund financial statements and government-wide financial statements to provide a complete picture of their financial position and operations.

Quiz 26: Not-For-Profit Organizations: Introduction and Private Npos

For a public C&U that presents a statement of revenues, expenses, and changes in net assets, unrealized gains on investments are reported in the nonoperating revenues and expenses section.

For a public C&U that presents a statement of revenues, expenses, and changes in net assets, unrestricted gifts received are reported in the nonoperating revenues and expenses section.

For a public C&U that presents a statement of revenues, expenses, and changes in net assets, temporarily restricted gifts received are reported in the nonoperating revenues and expenses section.

For a public C&U that presents a statement of revenues, expenses, and changes in net assets, permanently restricted gifts received are reported in the nonoperating revenues and expenses section.

Regarding public C&U reporting, a cash flow statement may or may not have to be presented.

Regarding public C&U reporting, one of the categories in the cash flow statement is a cash flows from investing in noncapital assets.

Regarding public C&U reporting, all public C&Us must present a management discussion and analysis (MDA) in their annual report.

Regarding public C&U reporting, all public C&Us must present the applicable required supplementary information (RSI) in their annual report.

_____ Which of the following financial statement titles is used by public HCOs?

_____ Which of the following statements is not presented by public HCOs?

_____ For public HCOs, which of the following manners of reporting is required in the operating statement for amounts released from restrictions?

_____ For public HCOs, which of the following items are shown above the operating profit or loss line in a statement of operations?

_____ For public HCOs, which of the following items are shown below the operating profit or loss line in the statement of operations?

_____ For public HCOs, which of the following items are shown below the operating profit or loss line in the statement of operations?

_____ For public HCOs, which of the following items are shown below the operating profit or loss line in the statement of operations?

_____ For public HCOs, which of the following items is reported separately in the statement of changes in fund balances, rather than in the statement of operations?

_____For public HCOs, which of the following items is not reported in the statement of operations?

_____ For public HCOs, which of the following items is reported in both the statement of operations and the statement of changes in fund balances?

_____ For a public C&U engaged only in governmental activities, which of the following financial statements is required?

_____ For a public C&U engaged in both governmental activities, and business-type activities, which of the following financial statements is required?