Filters
Question type
Study Flashcards

The Uniform Prudent Management of Institutional Funds Act specifies the spending rate a not-for-profit should use when establishing its expenditure policies.

A) True
B) False

Correct Answer

verifed

verified

During the years ended June 30,2017 and 2018,Jackson University,a private university,conducted a cancer research project financed by a $1,000,000 gift from an alumnus.The entire amount was pledged by the donor on July 10,2016.The gift was restricted to the financing of this particular research project.During the two-year research period,Jackson's gift receipts from the alumnus and research expenses related to the research project were as follows for each fiscal year (FY) : FY 2017 FY 2018 Gift receipts $200,000 $800,000 Cancer research expenses $100,000 $900,000 What amount of net assets was released from restriction in 2017?


A) $200,000.
B) $100,000.
C) $1,000,000.
D) $0.

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Which of the following statements concerning the audits of colleges and universities is ?


A) Both public and private colleges and universities are subject to the provisions of the single audit if they expend over $750,000 in federal funds in a fiscal year.
B) The nongovernmental nature of public colleges and universities means they are exempt from the requirements of the single audit, but they are required to have an audit conducted under generally accepted auditing standards.
C) Public colleges and universities are exempt from the requirements of the single audit, but they are required to follow the Uniform Guidance to ensure only allowable costs are charged to federal grants.
D) Both public and private colleges and universities are exempt from the requirements of the single audit, but they are both required to follow the Uniform Guidance to ensure only allowable costs are charged to federal grants.

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

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.

A) True
B) False

Correct Answer

verifed

verified

What type of college or university must report expenses by functional classification?


A) Both private and public colleges and universities.
B) Private colleges and universities.
C) Public colleges and universities.
D) Neither private nor public colleges and universities.

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

A private university following the recommendations of the National Association of College and University Business Officers (NACUBO)chart of accounts for reporting expenses,must disclose expenses by program and support function in the notes.

A) True
B) False

Correct Answer

verifed

verified

Colleges and universities will report tuition waivers as either a contra-revenue account or an expense,depending on the purpose for which the waiver is given.

A) True
B) False

Correct Answer

verifed

verified

The organizational form of a college can be governmental,nongovernmental not-for-profit,or for-profit.

A) True
B) False

Correct Answer

verifed

verified

Tuition scholarships for which there is no intention of collection from the student should be classified by a private university as


A) Reductions of gross revenue to arrive at net revenue.
B) Revenues and expenditures.
C) Revenues and expenses.
D) Reductions of gross revenue or as expenses provided they are consistently classified in the same manner from year to year.

E) B) and C)
F) C) and D)

Correct Answer

verifed

verified

Receipt of a $500,000 gift by a private college that must be invested,the earning of which are to be used to support a "chaired" professorship in accounting,would be recorded as an increase in temporarily restricted net assets.

A) True
B) False

Correct Answer

verifed

verified

Earnings on a private college's endowment investments may increase unrestricted or temporarily restricted net assets,or both.

A) True
B) False

Correct Answer

verifed

verified

A private college would record a federal grant received to test a medical device that the federal government intends to patent as Contributions-Temporarily Restricted.

A) True
B) False

Correct Answer

verifed

verified

The FASB requires that private colleges and universities prepare which of the following financial statements?


A) A statement of functional expenses.
B) A statement of net changes in financial position.
C) A statement of activities.
D) The FASB requires private colleges and universities to prepare all of the above statements.

E) B) and C)
F) C) and D)

Correct Answer

verifed

verified

An alumnus donates securities to a private college and stipulates that the principal be held in perpetuity and income from the securities be used for faculty travel.Dividends received from the securities should be recognized as increases in:


A) Endowments.
B) Unrestricted net assets.
C) Permanently restricted net assets.
D) Temporarily restricted net assets.

E) B) and D)
F) C) and D)

Correct Answer

verifed

verified

Colleges and universities often make loans to students.How would these loans be reported on the financial statements?


A) An expense.
B) A receivable.
C) A liability.
D) An investment.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

Tuition refunds are recorded by debiting Tuition and Fees-Unrestricted.

A) True
B) False

Correct Answer

verifed

verified

Which of the following measures may be useful to decision makers evaluating the financial condition of a college or university?


A) Number of graduates.
B) Current ratio.
C) Faculty productivity.
D) Graduation rate.

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Private colleges report intangible assets as a separate asset classification; whereas,public colleges report intangible assets as part of the capital asset classification.

A) True
B) False

Correct Answer

verifed

verified

A split-interest agreement is when the university and another beneficiary share in the benefits from a donor's gift.

A) True
B) False

Correct Answer

verifed

verified

Economic rationality would argue against a university accepting a split-interest agreement in which a fixed annuity is payable to the donor if:


A) The donor has attached conditions to the gift.
B) The university has no immediate need for the assets.
C) The sum of future annuity payments plus interest thereon exceeds the fair market value of the assets.
D) The present value of the future annuity payments and other liabilities exceed the fair market value of the assets.

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

Showing 41 - 60 of 61

Related Exams

Exam 1

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

59 Questions

Exam 2

Principles of Accounting and Financial Reporting for State and Local Governments

66 Questions

Exam 3

Governmental Operating Statement Accounts Budgetary Accounting

80 Questions

Exam 4

Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

86 Questions

Exam 5

Accounting for General Capital Assets and Capital Projects

82 Questions

Exam 6

Accounting for General Long-Term Liabilities and Debt Service

72 Questions

Exam 7

Accounting for the Business-Type Activities of State and Local Governments

75 Questions

Exam 8

Accounting for Fiduciary Activitiesagency and Trust Funds

63 Questions

Exam 9

Financial Reporting of State and Local Governments

65 Questions

Exam 10

Analysis of Governmental Financial Performance

59 Questions

Exam 11

Auditing of Governmental and Not-For-Profit Organizations

65 Questions

Exam 12

Budgeting and Performance Measurement

59 Questions

Exam 13

Accounting for Not-For-Profit Organizations

74 Questions

Exam 14

Not-For-Profit Organizationsregulatory, Taxation, and Performance Issues

54 Questions

Exam 16

Accounting for Health Care Organizations

59 Questions

Exam 17

Accounting and Reporting for the Federal Government Glossary

65 Questions

Show Answer