Chap016 - Chapter 16 - Accounting for Colleges and...

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Chapter 16 - Accounting for Colleges and Universities Chapter 16 Accounting for Colleges and Universities True / False Questions 1. Nongovernmental (private) colleges and universities follow FASB standards; governmental (public) colleges and universities should follow GASB standards. True False 2. Public colleges and universities are considered general purpose governments and are expected to be engaged in governmental activities only for purposes of their stand-alone reports. True False 3. Revenues and expenses of both public and private colleges and universities are accounted for on the accrual basis. True False 4. An unrestricted gift that is subsequently designated by the board of regents of a public university for agricultural research would be recorded as an unrestricted contribution. True False 5. Contributions or grants restricted by an external donor for a particular operating purpose would be reported as increases to restricted fund balances by a public college or university engaged only in business-type activities and as an addition to temporarily restricted net assets by a private college or university. True False 6. College summer school revenues of a public university engaged only in business-type activities should be recognized in the fiscal year in which the term is predominantly conducted. True False 16-1
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Chapter 16 - Accounting for Colleges and Universities 7. Depreciation of a residence hall should be reported as an expense in a private college's operating statement but might not be reported in the operating statement of a public college engaged only in business-type activities. True False 8. An unrestricted endowment established by the governing board of a public college engaged only in business-type activities is considered a permanent fund and would be reported as unrestricted net assets. True False 9. Earnings on endowment investments may increase unrestricted or restricted net assets, or both. True False 10. A receipt of a $500,000 gift by a private college which is stipulated by the donor to be used to endow a "chaired" professorship in accounting would be recorded as an increase in temporarily restricted net assets. True False 11. The sale of bonds for construction of a college residence hall would always result in a credit to proceeds of bonds in the accounts. True False 12. A statement of cash flows is required by GAAP for both private colleges and universities and public colleges and universities engaged in business-type activities. True False 13. Private colleges and universities must provide aggregated entity-wide financial statements prepared in conformity with FASB Statement No. 117 . Consequently, private colleges and universities no longer utilize fund accounting. True False 16-2
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Chapter 16 - Accounting for Colleges and Universities 14. Public colleges and universities that use business-type reporting must present segment information in the notes to the financial statements.
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This note was uploaded on 02/20/2012 for the course ACCTG 471 taught by Professor Muthannette during the Fall '08 term at Pennsylvania State University, University Park.

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Chap016 - Chapter 16 - Accounting for Colleges and...

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