Which of the following statements is true regarding accounting and financial reporting for public colleges and universities?
A) Public colleges and universities may choose to report in the same manner as private colleges and universities, using FASB standards.
B) Public colleges and universities may choose to report as special-purpose entities engaged in both governmental and business-type activities.
C) Both of the above.
D) None of the above.

Question

Quizplus · Accepted Answer

Public colleges and universities are considered special-purpose entities engaged in both governmental and business-type activities, and are required to use the Governmental Accounting Standards Board (GASB) standards for financial reporting. They cannot choose to report using FASB standards, as those are intended for private entities.

Which of the Following Statements Is True Regarding Accounting and Financial