Question 1

Which of the following is required as part of a complete set of financial statements for a private college or university?

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Question 2

The following are key terms in Chapter 15 that relate to accounting for colleges and universities:
A.Term endowments
B.Annuity agreements
C.Collections
D.Pooled life income agreements
E.Spending rate
F.Total return

Accepted Answer

The answer of The following are key terms in Chapter...

Question 3

State educational appropriations received by a public university are classified as which of the following on the statement of revenues,expenses,and changes in net position?

Accepted Answer

State educational appropriations are classified as nonoperating revenue on the statement of revenues, expenses, and changes in net position for a public university. This is because these funds are not generated by the core activities (such as teaching and research) that define the university's operations.

Question 4

How would estimated uncollectible tuition and fees be reported on the financial statements of a university?

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Question 5

During the year ended June 30,2014,Hopkins College,a private college,received a federal government grant of $800,000 for research on the role of music in improving math skills for students.Expenses for this research amounted to $100,000 during the same year.Under FASB standards,which of the following best represents how Hopkins College would report this nonexchange transaction in the net assets section for the year ended June 30,2014?

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Question 6

Which of the following statements usually will not be included in the annual financial report of a governmentally owned public university engaged only in business-type activities?

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Question 7

If a private university receives $1,000,000 in fiscal year 2014 as a grant restricted for a specific research project and makes expenditures amounting to $400,000 during fiscal year 2014 properly chargeable to the grant,how much should be reported as revenues in fiscal year 2014? Explain.

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Question 8

Colleges and universities often make loans to students.How would these loans be reported on the financial statements?

Accepted Answer

Loans made by colleges and universities to students are reported as receivables on their financial statements. This is because the institution expects to be repaid, making it an asset, not an expense, liability, or investment.

Question 9

Which of the following is a typical classification of a functional expense in a college or university?

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Question 10

During the years ended June 30,2014 and 2015,Jackson University,a private university,conducted a cancer research project financed by a $1,000,000 gift from an alumnus.The entire amount was pledged by the donor on July 10,2013,although she paid only $200,000 at that date.The gift was restricted to the financing of this particular research project.During the two-year research period,Jackson's gift receipts and research expenses related to the research project were as follows for each fiscal year (FY): FY 2014 FY 2015
Gift receipts $200,000 $800,000
Cancer research expenses $100,000 $900,000
How much contribution revenue should Jackson University report for the year ended June 30,2015?

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Question 11

Which of the following measures may be useful to decision makers evaluating the financial condition of a college or university?

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Question 12

"Tuition and fees should be recorded as revenues of colleges and universities even though they must be reported net of tuition refunds,scholarships,and fellowships." Do you agree or disagree with this statement? If you disagree,explain how refunds,scholarships,and fellowships should be recorded.

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Question 13

An alumnus donates securities to a private college and stipulates that the principal be held in perpetuity and income from the securities be used for faculty travel.Dividends received from the securities should be recognized as increases in

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The answer of An alumnus donates securities to a private...

Question 14

Which of the following statements about the Uniform Prudent Management of Institutional Funds Act (UPMIFA)is correct?

Accepted Answer

The Uniform Prudent Management of Institutional Funds Act (UPMIFA) allows institutions to release net assets from restrictions if certain criteria are met. It does not establish a maximum total return rate for investments, require a specific spending rate, or mandate policies concerning solicitation of donations.

Question 15

Tuition scholarships for which there is no intention of collection from the student should be classified by a private university as

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Question 16

Economic rationality would argue against a university accepting a split-interest agreement in which a fixed annuity is payable to the donor if:

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Question 17

Which of the following is not a classification of revenues for a college or university as recommended by the National Association of College and University Business Officers (NACUBO)?

Accepted Answer

The NACUBO recommends the following classifications of revenues for a college or university: tuition and fees, federal appropriations, state and local appropriations, sponsored research, auxiliary enterprises, investment income, private gifts, and other sources. Sporting events are not one of the recommended classifications.

Question 18

A college has collected returnable dormitory room deposits from students.How would these deposits be reported by the college?

Accepted Answer

The returnable dormitory room deposits are collected from students with the intention of returning them at a later time. Therefore, they are considered a current liability as the college has an obligation to return the deposit to the student.

Question 19

FASB standards applicable to private colleges and universities require that their financial statements include

Accepted Answer

FASB standards require private colleges and universities to include a statement of activities in their financial statements, which reports changes in net assets.

Question 20

Which of the following items would not affect the amounts reported in the Revenues and Gains section of the statement of activities for a private college or university?

Accepted Answer

Deferred revenues are amounts that have been received in advance but have not yet been earned, therefore they would not be included in the Revenues and Gains section of the statement of activities. The other options listed (student tuition and fees, tuition and fees discounts and allowances, and net assets released from restriction) are all items that would be included in the Revenues and Gains section.

Quiz 15: Accounting for Colleges and Universities