A private,not-for-profit university should prepare which of the following financial statements?
I.Statement of financial position
II.Statement of activities
III.Statement of changes in fund balances
IV.Statement of cash flows
V.Statement of changes in financial position
A)I,II,and III.
B)II,III,and IV.
C)I,II,and IV.
D)II,III,and V.

Question

Quizplus · Accepted Answer

A private, not-for-profit university should prepare a Statement of Financial Position (also known as a balance sheet) to show their assets, liabilities, and net assets.

They should also prepare a Statement of Activities (also known as an income statement) to show their revenues, expenses, and changes in net assets over a specific period.

Lastly, they should prepare a Statement of Cash Flows to show the inflows and outflows of cash during a specific period.

Therefore, choices I, II, and IV are the best choices. The Statement of Changes in Fund Balances and Statement of Changes in Financial Position are not typically used for not-for-profit universities.

A Private,not-For-Profit University Should Prepare Which of the Following Financial