Which of the following is true with respect to public four-year higher education institutions (public colleges)?
A) Revenue sources for public colleges include tuition and fees, state appropriations and donations. All other income is reported as unrelated business income.
B) Many institutions have most of their restricted resources managed by related entities, known as foundations.
C) No public colleges 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

Quizplus · Accepted Answer

Many public colleges have foundations that manage their restricted resources, such as endowments and gifts.

Answer: A 
 Public colleges receive revenue from various sources, including tuition and fees, state appropriations, and donations. Any other income is reported as unrelated business income.

Answer: C and D 
 Public colleges do not have the power to issue debt and must rely on their state to issue general obligation debt. Additionally, public colleges cannot report as special-purpose entities engaged only in business-type activities.

Which of the Following Is True with Respect to Public