Question 1

Tuition revenue for summer classes spanning two fiscal periods must be allocated on a pro-rata basis.

Accepted Answer

Tuition revenue for summer classes spanning two fiscal periods must be allocated on a pro-rata basis means that the revenue earned during the summer session should be divided proportionally among the two fiscal periods in which the classes were held.

Question 2

Funds that are restricted for a certain number of years and then released are considered to be quasi-endowments and are classified as temporarily restricted funds by private colleges and universities.

Accepted Answer

The answer of Funds that are restricted for a certain...

Question 3

NACUBO guidelines require both revenues and expenses for split summer sessions to be apportioned to the two fiscal years.

Accepted Answer

NACUBO guidelines require both revenues and expenses for split summer sessions to be apportioned to the two fiscal years.

Question 4

Unless acquired with restricted funds,plant acquired by a private college must be recorded as unrestricted.

Accepted Answer

The answer of Unless acquired with restricted funds,plant acquired by...

Question 5

Private colleges and universities are (primarily)subject to financial reporting standards issued by?

Accepted Answer

Private colleges and universities are subject to financial reporting standards issued by the Financial Accounting Standards Board (FASB), just like other private entities. The Governmental Accounting Standards Board (GASB) is responsible for standard-setting for governmental entities, while the American Institute of Certified Public Accountants (AICPA) provides guidance and standards for accounting professionals.

Question 6

Museum and other inexhaustible collections held by a private college may or may not be capitalized and recorded in the accounts of a private college.

Accepted Answer

It depends on the nature of the collection and the accounting policies of the college, whether or not they choose to capitalize and record it on their books. However, generally speaking, assets with an indefinite useful life, such as museum collections, are usually capitalized and recorded as a noncurrent asset on the balance sheet.

Question 7

Public Colleges and Universities are subject to standards issued by the GASB and most commonly report as special-purpose governments engaged in business-type activities.

Accepted Answer

Public Colleges and Universities are subject to standards issued by the GASB and most commonly report as special-purpose governments engaged in business-type activities, which makes statement A true.

Question 8

An unconditional pledge of support received by a private college is recorded as revenue when the promise to give is unconditional.

Accepted Answer

According to generally accepted accounting principles (GAAP), an unconditional pledge of support is recorded as revenue when the promise to give is unconditional. This means that the donor has pledged to give a certain amount of money to the college without any restrictions or conditions attached to the gift. Once the promise is made, the college can record the amount as revenue on its financial statements. However, if the pledge is conditional in any way, it cannot be recorded as revenue until the condition is met.

Question 9

Funds that are restricted for a certain number of years and then released are considered to be term endowments and are classified as temporarily restricted funds by private colleges and universities.

Accepted Answer

The statement is true. Funds that have restrictions for a specific period and then are released are term endowments, which private colleges and universities classify as temporarily restricted funds.

Question 10

College and universities treat uncollectible student accounts as bad debt expense.

Accepted Answer

The answer of College and universities treat uncollectible student accounts...

Question 11

Public colleges and universities are (primarily)subject to financial reporting standards issued by:

Accepted Answer

Public colleges and universities are primarily subject to financial reporting standards issued by the Governmental Accounting Standards Board (GASB), which sets accounting and financial reporting standards for state and local governments, including public colleges and universities. The Financial Accounting Standards Board (FASB) sets accounting standards for private-sector entities, while the American Institute of Certified Public Accountants (AICPA) is a professional organization for accountants and does not issue financial reporting standards.

Question 12

Inflows from self-supporting university operations,known as auxiliary enterprises,are restricted as to use.

Accepted Answer

Auxiliary enterprises are typically self-supporting operations of a university, such as dining services or bookstores, and their revenues are generally not restricted as to use.

Question 13

Universities treat athletic scholarships as a reduction in revenue.

Accepted Answer

When a university awards an athletic scholarship, it counts as a reduction in the revenue generated by that particular athlete since they are not paying full tuition. However, universities may still benefit from increased exposure and ticket sales resulting from successful athletic programs.

Question 14

Plant acquired by a private college with either unrestricted or restricted resources may be (1)recorded initially as unrestricted OR (2)recorded initially as temporarily restricted and then classified in accordance with the depreciation schedule.

Accepted Answer

Plant acquired by a private college with either unrestricted or restricted resources may be recorded initially as unrestricted or temporarily restricted, but it ultimately depends on how the college intends to use the asset. If it is not specifically designated for a particular purpose or time frame, it may be recorded as unrestricted. If it is designated for a specific purpose or time frame, it may be recorded as temporarily restricted and then re-classified as appropriate based on the depreciation schedule.

Question 15

Private colleges and universities recognize contribution revenue in the year in which the payment is received.

Accepted Answer

Private colleges and universities typically follow the cash basis of accounting, which means revenue is recognized when payment is received.

Question 16

Private colleges and universities recognize contribution revenue in the year in which the unconditional pledge is made.

Accepted Answer

Private colleges and universities follow the Generally Accepted Accounting Principles (GAAP) which allows recognizing contribution revenue in the year in which the unconditional pledge is made.

Question 17

Private,Not-for-Profit Colleges and Universities must have Statement of Financial Position,Statement of Activities,Statement of Cash Flows,and Notes to the Financial Statements included in their financial report.

Accepted Answer

Private, not-for-profit colleges and universities are required to include these four financial statements in their financial reports in order to provide transparency and accuracy to their stakeholders.

Question 18

Tuition revenue for summer classes spanning two fiscal periods must be recorded in the period when the drop date passes and refunds are no longer an option.

Accepted Answer

Because accrual accounting is used, the tuition revenue is split between the two periods that summer school covered.

Question 19

College and universities treat uncollectible student accounts as reductions in revenue,rather than bad debt expense.

Accepted Answer

Colleges and universities typically report uncollectible student accounts as a reduction in revenue in their financial statements because they are considered to be a failure to collect funds that were previously recognized as revenue. This is different from bad debt expense, which is typically associated with private sector businesses that may be unable to collect payments from their customers.

Question 20

NACUBO guidelines treat estimates of uncollectible accounts as reductions in revenue.

Accepted Answer

NACUBO guidelines state that estimates of uncollectible accounts should be treated as reductions in revenue in order to accurately reflect the amount of revenue that will ultimately be collected. This reduction is recorded as an allowance for doubtful accounts on the balance sheet.

Quiz 11: College and University Accounting Private Institutions

Tuition revenue for summer classes spanning two fiscal periods must be allocated on a pro-rata basis.

Funds that are restricted for a certain number of years and then released are considered to be quasi-endowments and are classified as temporarily restricted funds by private colleges and universities.

NACUBO guidelines require both revenues and expenses for split summer sessions to be apportioned to the two fiscal years.

Unless acquired with restricted funds,plant acquired by a private college must be recorded as unrestricted.

Private colleges and universities are (primarily) subject to financial reporting standards issued by?

Museum and other inexhaustible collections held by a private college may or may not be capitalized and recorded in the accounts of a private college.

Public Colleges and Universities are subject to standards issued by the GASB and most commonly report as special-purpose governments engaged in business-type activities.

An unconditional pledge of support received by a private college is recorded as revenue when the promise to give is unconditional.

Funds that are restricted for a certain number of years and then released are considered to be term endowments and are classified as temporarily restricted funds by private colleges and universities.

College and universities treat uncollectible student accounts as bad debt expense.

Public colleges and universities are (primarily) subject to financial reporting standards issued by:

Inflows from self-supporting university operations,known as auxiliary enterprises,are restricted as to use.

Universities treat athletic scholarships as a reduction in revenue.

Plant acquired by a private college with either unrestricted or restricted resources may be (1)recorded initially as unrestricted OR (2)recorded initially as temporarily restricted and then classified in accordance with the depreciation schedule.

Private colleges and universities recognize contribution revenue in the year in which the payment is received.

Private colleges and universities recognize contribution revenue in the year in which the unconditional pledge is made.

Private,Not-for-Profit Colleges and Universities must have Statement of Financial Position,Statement of Activities,Statement of Cash Flows,and Notes to the Financial Statements included in their financial report.

Tuition revenue for summer classes spanning two fiscal periods must be recorded in the period when the drop date passes and refunds are no longer an option.

College and universities treat uncollectible student accounts as reductions in revenue,rather than bad debt expense.

NACUBO guidelines treat estimates of uncollectible accounts as reductions in revenue.