According to Statement of Financial Accounting Standards 117,the statement of financial position of a private university should report the excess of the university's assets over its liabilities as:

Question

Quizplus · Accepted Answer

According to Statement of Financial Accounting Standards 117, private universities should report their excess assets over liabilities as unrestricted, temporarily restricted, and permanently restricted net assets. This is because private universities often receive donations with restrictions on how the funds can be used, and so it is important to break down the net assets accordingly. Fund balance (A), unrestricted and restricted fund balance (B), and retained earnings (C) are not appropriate choices for a private university's financial statements.

According to Statement of Financial Accounting Standards 117,the Statement of Financial