Which of the following is true regarding the Statement of Revenues,Expenses,and Changes in Net Assets for a public (government-owned)college?
A) The modified accrual basis of accounting is used to determine the net increase or decrease in net assets.
B) Auxiliary enterprise activities represent revenues and expenses related to units of the college that provide services to students on a user fee basis.
C) Both of the above are true.
D) Neither of the above is true.

Question

Quizplus · 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.

Which of the Following Is True Regarding the Statement of Revenues,Expenses,and