Question : 80.Which of the following true regarding the Statement of Cash : 1255523

80.Which of the following is true regarding the Statement of Cash Flows for a public college?

A)The indirect method must be used.

B)The statement is in the same format required for state and local governmental enterprise funds.

C)Both of the above are true.

D)Neither of the above is true.

81.Which of the following statements is (are) true regarding public colleges and universities choosing to report as special-purpose entities engaged in business-type activities only?

A)Endowments would be reported in the Statement of Net Assets as Net Assets Restricted-Nonexpendable.

B)Capital appropriations from state governments are shown, in the Statement of Revenues, Expenses, and Changes in Net Assets, as a category separate from revenues.

C)Both of the above.

D)Neither of the above.

82.Public colleges and universities follow __________ guidelines while private colleges and universities follow ________ guidelines

A)GAO, FASB.

B)FASB, GAO.

C)FASB, GASB.

D)GASB, FASB.

83.Which of the following groups would not be considered a component unit of a special-purpose government, for the purposes of applying GASB Statement 39: Determining Whether Certain Organizations Are Component Units?

A)General governments.

B)Booster clubs.

C)Museums.

D)Health care entities.

84.According to the National Association of College and Business Officers, scholarship discounts and allowances paid by institutional funds:

A)Are included in tuition revenue and recorded as an expense.

B)Are not included in tuition revenue but are included as an “other source”.

C)Are reported as a reduction of revenue by directly reducing the revenue account or a contra- revenue account.

D)Are reported as an adjustment to tuition revenue in the government-wide statements.

85.Fees waived by the an educational institution in return for services to be provided by students are reported:

A)As a reduction in tuition revenue by directly reducing the revenue account or a contra-revenue account.

B)As an adjustment to tuition revenue in the government-wide statements.

C)As an expense.

D)By deducting the waived fee from tuition revenue before it is recorded.

86.Which of the following is true?

A)Tuition and fees charged are included in income and the fees waived for graduate assistants are expensed.

B)Scholarship allowances for which no services are required are expensed.

C)Fees waived for graduate assistantships for which services are required are deducted directly from tuition revenue.

D)Revenues for summer sessions are recorded in deferred revenues and recorded as revenue when the semester ends.

87.GASB requires that educational institutions who engage in business-type activities and issue debt account for the debt by:

A)Recording the debt service as an expenditure as it becomes due.

B)Recording the interest as an expense when it is due and payable.

C)Recording the principal net of any premium or discount when the debt is issued and expense the interest as it is paid.

D)Recording the interest expense on the accrual basis, including amortizing the premium or discount, if applicable.

88.With respect to public colleges and universities, expenses are reported by:

A)Function.

B)Object classification.

C)Department.

D)Academic vs. non academic components.

Answer:  B

The following information applies to the next three questions:

Tuition and fees for the Northern University was assessed at $21,000,000.  Scholarship allowances, for which no services are required, were $1,700,000 and graduate assistantships, for which services are required, were $900,000.

89.What is the journal entry to record tuition revenue?

A)  Accounts receivable 19,300,000

Operating Revenue-Student Tuition & Fees19,300,000

B)  Accounts Receivable20,100,000

Operating Revenue-Student Tuition & Fees20,100,000

C)Accounts Receivable18,400,000

Operating Revenue-Student Tuition & Fees18,400,000

D)Accounts Receivable21,000,000

Operating Revenue-Student Tuition & Fees21,000,000