A state university receives an appropriation for from the state for capital projects of $5 million and a state appropriation for other purposes of $20 million. How should the amounts received be reported in the university's statement of revenues, expenses, and changes in net position?

Question

Quizplus · Accepted Answer

The state appropriation for capital projects of $5 million is considered a nonoperating revenue because it is not related to the university's core operations. The state appropriation of $20 million for other purposes is also considered a nonoperating revenue. Therefore, the total amount of appropriations received by the university should be reported as nonoperating revenues of $25 million, with $5 million of that total being classified as capital contributions.

A State University Receives an Appropriation for from the State