Question :
60.With respect to public colleges engaged in business-type activities, which : 1255534
60.With respect to public colleges engaged in business-type activities, which of the following is not correct?
A)GASB requirements for business-type activities of public colleges requires accrual account for debt, include accrual of interest and amortization of debt discount and premium.
B)Most public college foundations are required to be reported as discretely presented component units in the college’s financial report.
C)Only amounts that are to paid by students and third-party payers can be shown as tuition and fee revenue net of any scholarship discounts and allowances.
D)All of the above are correct
61.Depending upon the circumstances, in practice public colleges and report as special purpose entities engaged in:
A)business-type activities only.
B)both governmental and business-type activities.
C)governmental activities only.
D)any one of the above.
62.Which of the following is true with respect to public four-year higher education institutions (public colleges)?
A)Sometimes, but not always public colleges are included as component units in the state CAFR
B)Revenue sources for public colleges include tuition and fees, state appropriations and donations. All other income is reported as unrelated business income.
C)No public colleges have the power to issue debt; it must be issued by the state as general obligation debt.
D)Public colleges may not choose to report as special-purpose entities engaged only in business-type activities.
63.Which of the following is true regarding the financial statements for special-purpose entities?
A)Special-purpose entities that are engaged only in one governmental activity may combine government-wide and governmental fund statements.
B)Special-purpose entities that are engaged in fiduciary activities only prepare the statements required for fiduciary funds (Statement of Fiduciary Net Assets, Statement of Changes in Fiduciary Net Assets).
C)Both of the above.
D)Neither of the above.
64.Special purpose governments engaged only in fiduciary-type activities are required to prepare all of the following except:
A)Statement of Fiduciary Net Assets
B)Statement of Cash Flows
C)Statement of Changes in Fiduciary Net Assets
D)Management Discussion and Analysis
65.Which of the following is true regarding financial reporting of special-purpose entities?
A)Special purpose entities might include park districts, school districts, and public colleges and universities.
B)Special-purpose entities, in some cases, have more limited reporting requirements than general-purpose entities.
C)Both of the above are true.
D)Neither of the above is true.
66.Public colleges and universities may choose to report as:
A)special-purpose entities engaged in governmental and business-type entities.
B)special-purpose entities engaged in business-type activities only.
C)either (a) or (b) depending on the nature of their operations.
D)neither (a) nor (b).
67.Public colleges and universities that choose to report as special-purpose entities engaged only in business-type activities would have which of the following financial statements?
A)Statement of Net Assets, Statement of Activities.
B)Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Net Assets.
C)Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Net Assets, Statement of Cash Flows.
D)None of the above.
68.Which of the following is true regarding the Statement of Revenues, Expenses and Changes in Net Assets for a public college reporting as a special purpose entity engaged in business type activities only?
A)The accrual basis of accounting is used to measure revenues and expenses.
B)Encumbrances are recorded at the time purchase orders are issued.
C)Both of the above are true.
D)Neither of the above is true.
69.A public college had tuition and fees of $21,000,000. Scholarships, for which no services were required, amounted to $1,600,000. Graduate assistantships, for which services were required, amounted to $2,500,000. The amount to be reported by the public college as net tuition and fees would be:
A) $21,000,000.
B)$19,400,000.
C)$18,500,000.
D)$16,900,000.
