Question 1

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 2

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 3

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

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Question 4

Sam Smith died,leaving a will that provided that $1,000,000 be transferred to a not-for-profit hospital. The hospital is to invest the funds for 10 years and give $40,000 each year to the granddaughter. At the end of the 10 years,the $1,000,000 can be used for any purpose desired by the hospital. Which of the following is true?

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The answer of Sam Smith died,leaving a will that provided...

Question 5

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

A tuition discount is given to the student who has received an athletic scholarship, which is a reduction in the amount of tuition owed to the school. Therefore, the appropriate debits would be to Cash (for the $500 received) and to Tuition Discount on Accounts Receivable (for the remaining $7,500 that the student has not paid due to the scholarship).

Question 6

Match the Type of Entity with the Equity sections of the Balance Sheet/ Statement of Net Assets/Position (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 Investment in Capital Asset,Restricted Net Position,Unrestricted Net Position.

Accepted Answer

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Question 7

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 8

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?

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

Question 9

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

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Question 10

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 11

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 12

Student scholarships for which no service was required were applied to student accounts in the amount of $5,000.What is the journal entry to record this event?

Accepted Answer

The journal entry will debit Tuition discount-Unrestricted-Student aid account as it is an income account and will credit Accounts Receivable as the scholarship amount is being applied to student accounts. This will decrease the amount of Accounts Receivable for the university by $5,000.

Question 13

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

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

Question 14

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 15

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

Accepted Answer

Temporarily restricted revenue refers to funds that have certain restrictions placed on them, typically by the donor or grantor. In this case, a contribution for plant acquisition has restrictions on how it is to be used, therefore it is an example of temporarily restricted revenue. Tuition and fees, auxiliary enterprises, and quasi-endowment are not typically subject to donor restrictions.

Question 16

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.

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

Question 17

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 18

The equity section of the balance sheet for investor-owned colleges and universities includes which of the following designations?

Accepted Answer

Investor-owned colleges and universities follow FASB standards for commercial organizations. The equity section would consist of paid in capital and retained earnings.

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

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

Accepted Answer

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Quiz 11: College and University Accounting Private Institutions