Question 1

Identify the primary financial reporting body for each of the following forms of college or university
A.Private not-for-profit
B.For Profit - Investor owned
C.Public - government owned

Accepted Answer

The answer of Identify the primary financial reporting body for...

Question 2

Give 2 examples of unrestricted inflows,restricted inflows and permanently restricted inflows for a private college or university.

Accepted Answer

The answer of Give 2 examples of unrestricted inflows,restricted inflows...

Question 3

The NACUBO Financial Accounting and Reporting Manual treats estimates of uncollectible student accounts as:

Accepted Answer

The answer of The NACUBO Financial Accounting and Reporting Manual...

Question 4

An alum pledges $10,000 to Greystone College in 2013 on the condition that matching funds are raised.The matching funds are raised 2014,how much revenue will Greystone College recognize in 2013? .

Accepted Answer

Greystone College cannot recognize the $10,000 pledge as revenue until the matching funds are raised, which does not occur until 2014. Therefore, Greystone College will not recognize any revenue in 2013.

Question 5

Distinguish between (a)true endowments,(b)term endowments,and (c)quasi-endowments.Explain how the net assets of each is classified by a private college or university.

Accepted Answer

The answer of Distinguish between (a)true endowments,(b)term endowments,and (c)quasi-endowments.Explain how...

Question 6

How should the income earned by a private college's endowment be classified?

Accepted Answer

The answer of How should the income earned by a...

Question 7

If the receivable for a student is $8,000 and the student pays only $500 as the result of receiving an athletic scholarship from the school,what would be the appropriate debits

Accepted Answer

Since the student received an athletic scholarship, it can be assumed that the $500 payment was actually a tuition discount. Therefore, we would debit Cash for $500 and Debit Tuition Discount on Accounts Receivable for $7,500 ($8,000 receivable - $500 payment). This reflects the fact that we have received payment (Cash) and also adjusted the accounts receivable balance for the tuition discount (Tuition Discount on Accounts Receivable).

Question 8

When summer school classes at a university cover parts of two fiscal years,the revenues and expenses are

Accepted Answer

Because accrual accounting is used, the tuition revenue and expenses are split between the two periods that summer school covers.

Question 9

What accounts appear in the equity section of the balance sheet for a college,assuming the college is:
A.Public - government owned
B.Private not-for-profit
C.For Profit - Investor owned business

Accepted Answer

The answer of What accounts appear in the equity section...

Question 10

If the receivable for a student is $9,000 and the student pays only $1,000 as the result of receiving a work study appointment from the school,what would be the appropriate debits.

Accepted Answer

The answer of If the receivable for a student is...

Question 11

What are the reporting options for the Statement of Financial Position of institutions of higher education as outlined by the NACUBO Financial Accounting and Reporting Manual for Higher Education?

Accepted Answer

The answer of What are the reporting options for the...

Question 12

Student scholarships for which no service was required were applied to student accounts in the amount of $3,000.What is the journal entry to record this event?
A) Debit: Tuition discount-Unrestricted-Student aid $3,000 Credit: Accounts Receivable $3,000.
B) Debit: Scholarship Expense $3,000 Credit: Accounts Receivable $3,000.
C) Debit: Tuition waiver $3,000 Credit: Loan to student $3,000.
D) None of the above.

Accepted Answer

The answer of Student scholarships for which no service was...

Question 13

NACUBO has issued a position paper titled "Accounting and Reporting Scholarship Allowances to Tuition and Other Revenues by Higher Education" to address the issue of scholarship allowances.How are scholarships and allowances treated in the financial statements by private colleges and universities?

Accepted Answer

The answer of NACUBO has issued a position paper titled...

Question 14

The equity section of the balance sheet for private,not-for-profit colleges and universities includes which of the following designations?

Accepted Answer

Private, not-for-profit colleges and universities use the three designations of Unrestricted Net Assets, Temporarily Restricted Net Assets, and Permanently Restricted Net Assets to differentiate the various categories of funding. Paid-in capital, retained earnings and net assets invested in capital assets are more commonly found on the balance sheets of for-profit companies.

Question 15

With respect to private colleges and universities,why are quasi-endowments not classified as permanently restricted net assets while true endowments are?

Accepted Answer

The answer of With respect to private colleges and universities,why...

Question 16

Which of the following is an example of a temporarily restricted revenue?

Accepted Answer

A contribution for plant acquisition is an example of a temporarily restricted revenue because it is restricted for a specific purpose and can only be used for that purpose, in this case, acquiring a plant or a piece of equipment. Tuition and fees and auxiliary enterprises are examples of unrestricted revenues, as they can be used for any purpose. Quasi-endowment is a type of endowment, which is a permanently restricted fund.

Question 17

Identify three types of restrictions placed on temporarily restricted net assets of a private sector college or university and outline the accounting requirements for each type.

Accepted Answer

The answer of Identify three types of restrictions placed on...

Question 18

MATCHING
-Match the Type of Entity with the Equity sections of the Balance Sheet/ Statement of Net Assets (Match the Letter and Number)
A.Investor Owned
B.Public University
C.Private Not for Profit
1.Unrestricted,Temporary Restricted net assets and Permanently Restricted net assets
2.Paid in Capital,Retained Earnings
3.Net Assets Invested in Capital Assets,Net of Related Debt,Restricted Net Assets,Unrestricted Net Assets.

Accepted Answer

The answer of MATCHING
-Match the Type of Entity with the...

Question 19

What is the distinction between discounts and expenses for private colleges and universities?

Accepted Answer

The answer of What is the distinction between discounts and...

Question 20

What is the basis of accounting for a private college or university and what are the principal sources of reporting standards?

Accepted Answer

The answer of What is the basis of accounting for...

Quiz 11: College and University Accounting Private Institutions

Identify the primary financial reporting body for each of the following forms of college or university A.Private not-for-profit B.For Profit - Investor owned C.Public - government owned