Question 1

Which of the following is true regarding the Statement of Cash Flows for a public college?

Accepted Answer

The answer of Which of the following is true regarding...

Question 2

Which of the following is true regarding the Statement of Revenues, Expenses and Changes in Net Assets for a public (government-owned) college?

Accepted Answer

The Statement of Revenues, Expenses, and Changes in Net Assets for a public (government-owned) college typically uses the full accrual basis of accounting to determine the net increase or decrease in net assets. However, auxiliary enterprise activities, such as residence halls, dining services, and bookstores, are accounted for using the similar accounting practices as in commercial organizations because they represent revenue-generating activities that must be self-supporting over the long-term. Therefore, option B is correct, and option A is incorrect. Option C is incorrect because only option B is true. Option D is incorrect because option B is true.

Question 3

Which of the following is true regarding financial reporting of special-purpose entities?

Accepted Answer

Special-purpose entities can include park districts, school districts, and public colleges and universities which are governmental units. Also, special-purpose entities may have more limited reporting requirements than general-purpose entities depending on their purpose and ownership structure.

Question 4

Which of the following is true regarding the Statement of Revenues, Expenses and Changes in Net Assets for a public college reporting as a special purpose entity engaged in business type activities only?

Accepted Answer

The answer of Which of the following is true regarding...

Question 5

Which of the following is true regarding financial reporting of special-purpose entities?

Accepted Answer

Special-purpose entities may be included as component units in a primary government's financial statements if the primary government is financially accountable for the entity. Choice B is not true because special-purpose entities generally only engage in one specific activity, and therefore typically only prepare either government-wide or governmental fund statements.

Question 6

Which of the following is true regarding the Statement of Revenues, Expenses and Changes in Net Assets for a public college?

Accepted Answer

The answer of Which of the following is true regarding...

Question 7

Which of the following is true regarding the Statement of Cash Flows for a public college?

Accepted Answer

The answer of Which of the following is true regarding...

Question 8

Public colleges and universities that choose to report as special-purpose entities engaged only in business-type activities would have which of the following financial statements?

Accepted Answer

Public colleges and universities reporting as special-purpose entities engaged only in business-type activities must prepare a Statement of Net Assets, a Statement of Revenues, Expenses and Changes in Net Assets, and a Statement of Cash Flows.

Question 9

Which of the following is true regarding the Statement of Cash Flows for a public college?

Accepted Answer

The answer of Which of the following is true regarding...

Question 10

Assume a government is a special-purpose government engaged in only one governmental activity. Which financial statements would be required?

Accepted Answer

The answer of Assume a government is a special-purpose government...

Question 11

A public college had tuition and fees for the year ended June 30, 2009 in the amount of $45,000,000. Scholarships, for which no services were required, amounted to $2,500,000. Graduate assistantships, for which services were required, amounted to $2,300,000. The amount to be reported by the college for net tuition and fee revenue would be:

Accepted Answer

The answer of A public college had tuition and fees...

Question 12

Which of the following is true regarding the Statement of Revenues, Expenses and Changes in Net Assets for a public college?

Accepted Answer

The answer of Which of the following is true regarding...

Question 13

Public colleges and universities may choose to report as:

Accepted Answer

Public colleges and universities may engage in both governmental and business-type activities. As a result, they have the option to report as either special-purpose entities engaged in governmental and business-type entities, or special-purpose entities engaged in business-type activities only, depending on the nature of their operations. Therefore, option (c) is the best choice.

Question 14

Assume a government is a special-purpose entity engaged in fiduciary activities only. Which of the following financial statements would be required?

Accepted Answer

Since the government is engaged in fiduciary activities only, it would only need to produce financial statements related to those activities. The statement of fiduciary net assets and statement of changes in fiduciary net assets would provide information on the government's resources and obligations related to the fiduciary activities. The other options include financial statements related to governmental or business-type activities, which would not be relevant in this case.

Question 15

Which of the following is true regarding the Statement of Cash Flows for a public college?

Accepted Answer

The answer of Which of the following is true regarding...

Question 16

A public college had tuition and fees of $20,000,000. Scholarships, for which no services were required, amounted to $2,000,000. Graduate assistantships, for which services were required, amounted to $1,000,000. The amount to be reported by the public college as net tuition and fees would be:

Accepted Answer

Net tuition and fees only include revenue from tuition and fees that is not offset by any scholarships or other forms of financial aid. Therefore, we need to subtract the scholarships ($2,000,000) from the tuition and fees ($20,000,000) to get $18,000,000. The graduate assistantships, for which services are required, do not offset the tuition and fees and are not included in the calculation of net tuition and fees.

Question 17

Which of the following groups would probably not be considered a component unit of a special-purpose government, for the purposes of applying GASB Statement 39?

Accepted Answer

The high school band booster club would not be considered a component unit of a special-purpose government, as it is not a legally separate organization created by the government and it does not have a financial relationship with the government. The other options are all examples of organizations that could potentially be considered component units, as they may be legally created by the government and/or have a financial relationship with the government.

Question 18

Assume a government is determined to be a special-purpose government engaged in business-type activities only. Which of the following financial statements would be required?

Accepted Answer

The answer of Assume a government is determined to be...

Question 19

Which of the following would be true regarding the Statement of Net Assets for a public college reporting as a special purpose entity engaged in business type activities only?

Accepted Answer

The answer of Which of the following would be true...

Question 20

Which of the following statements is true regarding accounting and financial reporting for public colleges and universities?

Accepted Answer

Public colleges and universities typically follow GASB standards and may report as special-purpose entities engaged in both governmental and business-type activities.

Quiz 9: Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Which of the following is true regarding the Statement of Cash Flows for a public college?

Which of the following is true regarding the Statement of Revenues, Expenses and Changes in Net Assets for a public (government-owned) college?

Which of the following is true regarding financial reporting of special-purpose entities?

Which of the following is true regarding the Statement of Revenues, Expenses and Changes in Net Assets for a public college reporting as a special purpose entity engaged in business type activities only?

Which of the following is true regarding financial reporting of special-purpose entities?

Which of the following is true regarding the Statement of Revenues, Expenses and Changes in Net Assets for a public college?

Which of the following is true regarding the Statement of Cash Flows for a public college?

Public colleges and universities that choose to report as special-purpose entities engaged only in business-type activities would have which of the following financial statements?

Which of the following is true regarding the Statement of Cash Flows for a public college?

Assume a government is a special-purpose government engaged in only one governmental activity. Which financial statements would be required?

Which of the following is true regarding the Statement of Revenues, Expenses and Changes in Net Assets for a public college?

Public colleges and universities may choose to report as:

Assume a government is a special-purpose entity engaged in fiduciary activities only. Which of the following financial statements would be required?

Which of the following is true regarding the Statement of Cash Flows for a public college?

A public college had tuition and fees of $20,000,000. Scholarships, for which no services were required, amounted to $2,000,000. Graduate assistantships, for which services were required, amounted to $1,000,000. The amount to be reported by the public college as net tuition and fees would be:

Which of the following groups would probably not be considered a component unit of a special-purpose government, for the purposes of applying GASB Statement 39?

Assume a government is determined to be a special-purpose government engaged in business-type activities only. Which of the following financial statements would be required?

Which of the following would be true regarding the Statement of Net Assets for a public college reporting as a special purpose entity engaged in business type activities only?

Which of the following statements is true regarding accounting and financial reporting for public colleges and universities?