GASB requirements for business-type activities of public colleges requires accrual of interest and amortization of debt discount and premium.

Question

Quizplus · Accepted Answer

GASB (Governmental Accounting Standards Board) requirements mandate accrual of interest and amortization of debt discount and premium for business-type activities of public colleges. This is in line with the accrual basis of accounting, which aims to provide a more accurate picture of an organization's financial position by recognizing all revenues and expenses when they are incurred, rather than when cash is received or paid out. Accrual accounting helps to provide a more comprehensive and long-term view of an organization's financial health.

GASB Requirements for Business-Type Activities of Public Colleges Requires Accrual