Which of the following statements is (are)true regarding public colleges and universities choosing to report as special-purpose entities engaged in business-type activities only?
A) Endowments would be reported in the Statement of Net Position as Net Position Restricted-Nonexpendable.
B) Capital appropriations from state governments are shown, in the Statement of Revenues, Expenses, and Changes in Net Position, as a category separate from revenues.
C) Both of the above.
D) Neither of the above.

Question

Quizplus · Accepted Answer

A) Endowments would be reported in the Statement of Net Position as Net Position Restricted-Nonexpendable, as these funds are placed in a legally restricted account, and the principle cannot be spent, but the interest earned can be used to fund programs or activities.
B) Capital appropriations from state governments are shown, in the Statement of Revenues, Expenses, and Changes in Net Position, as a category separate from revenues, as this is a non-operating type of revenue that is received for the purpose of investing in or building capital assets.

Which of the Following Statements Is (Are)true Regarding Public Colleges