Question : 69.According to the FASB, plant acquired by colleges and universities : 1255350

69.According to the FASB, plant acquired by colleges and universities with either unrestricted or restricted resources are recorded as:

A)Restricted

B)Unrestricted

C)Initially as temporarily restricted and reclassified as unrestricted in accordance with the depreciation schedule

D)Either B or C

70.When a private college or university has a foundation, and that foundation receives contributions specifically directed for the benefit of the college or university,

A)The college or university records no revenue until monies are received from the foundation

B)At the time of the contribution to the foundation, the college or university records an increase in net assets and unearned revenue.  When the money is received the unearned revenue is reduced and revenue is recorded.

C)The college or university must recognize its interest in the contribution as an asset and revenue at the same time as the foundation.

D)None of the above

71.How should the following revenues be reported by a private college?

?$1,500 state appropriations,

?$5,600 in unrestricted contributions,

?$600 unrestricted investment income on endowment investments,

?$11,600 sales of services by auxiliary enterprises.

UnrestrictedRestricted

A)19,300           0

B)17,800    1,500

C)17,200    2,100

D)5,600  13,700

72.The FASB has the authority to set accounting standards for all of the following organizations except:

A)Public colleges.

B)Private colleges.

C)For profit proprietary schools.

D)Educational foundations established to support a private college or university.

73.Which of the following is a required statement for a private college?

A)Statement of Changes in Fund Balance.

B)Statement of Revenues and Expenditures.

C)Budgetary Comparison Statement.

D)None of the above is a required statement.

74.On December 1, 2014 St. Sebastian University, a private college, received cash of $ 2,000 and a pledge for another $ 5,000 to be paid in January 2015.  The amounts are to establish an endowment to provide scholarships for music majors.  How should this event be recorded on December 1, 2014?

A)Cash 2,000

Contributions receivable 5,000

Revenues:  Temporarily restricted contributions7,000

B)Cash 2,000

Contributions receivable 5,000

Revenues:  Permanently restricted contributions7,000

C)Cash2,000

Revenues:  Permanently restricted contributions2,000

D)Cash2,000

Contributions receivable 5,000

Revenues:  Permanently restricted contributions2,000

Deferred Revenues                5,000

75.Which of the following is true of a Statement of Activities prepared for a private college or university?

A)All expenses are shown as unrestricted.

B)Reclassifications from unrestricted to permanently restricted net assets are reported when the governing board designates unrestricted funds for permanent investment in the endowment.

C)Only realized gains or losses on investments are reported.

D)All of the above are true.

76.Which of the following types of college/university would have these components of the Financial Report?

?Statement of Financial Position..

?Statement of Activities.

?Statement of Cash Flows.

?Notes to the Financial Statements.

A)  Investor Owned.

B)  Public University.

C)  Private Not-for-Profit.

D)  None of the above.

77.For private colleges and universities, reclassifications of temporarily restricted and unrestricted net assets could be made:

A)For satisfaction of purpose restrictions.

B)When time restrictions expire.

C)If the resources donated for fixed assets have been expended on such assets.

D)All of the above.

78.Which of the following is true regarding accounting and financial reporting for private colleges and universities?

A)Expenses may be unrestricted or temporarily restricted depending on donor intent.

B)The Statement of Cash Flows must use the direct method.

C) A Statement of Unrestricted Revenues, Expenses and Other Changes in Unrestricted Net Assets and a Statement of Changes in Net Assets may be presented instead of a Statement of Activities.

D)None of the above are true.