Question

Multiple Choice Questions
Identify the best answer for each of the following:
1. GASB Statement No. 35 requires that government colleges and universities engaged solely in business-type activities present
a. A Statement of Net Position.
b. A Statement of Cash Flows.
c. A Statement of Revenues, Expenses, and Changes in Net Position.
d. Management’s Discussion & Analysis.
e. All of the above.

2. Government colleges and universities solely engaged in business-type activities would present the following classes of equity except
a. Net investment in capital assets.
b. Restricted fund balance.
c. Restricted net position.
d. Unrestricted net position.

3. Which of the following statements about accounting for government colleges and universities is false?
a. Government colleges and universities engaged in business-type activities commonly account for transactions on a fund basis unique to their environment throughout the fiscal year.
b. Government colleges and universities engaged in business-type activities commonly account for expenditures instead of expenses throughout the fiscal year.
c. Financial reporting for a college or university treated as an enterprise activity is basically the same as the financial reporting for any enterprise activity.
d. The accounting and reporting for exchange revenues for colleges and universities is not consistent with the methods used for other governmental entities.
4. A government college or university’s Statement of Cash Flows would potentially report all of the following categories of cash flows except
a. Cash flows from operating activities.
b. Cash flows from capital and related financing activities.
c. Cash flows from financing activities.
d. Cash flows from investing activities.

5. Restricted net position for a governmental college or university is commonly sub-classified for
a. Designated net position.
b. Reserved net position.
c. Nonexpendable net position.
d. Net investment in capital assets.

6. How should endowment investments that are permanent in nature be reported on a university Statement of Net Position?
a. As a noncurrent asset
b. As a current or noncurrent asset as per the donor’s specification
c. As a current asset
d. As part of the university’s general cash and investments

7. Scholarships for students’ tuition and fees that are being paid from grants the university received (on the students’ behalf) should be reported as
a. A reduction of tuition and fee revenues.
b. Expenses in the GAAP financial statements.
c. Expenditures in the GAAP financial statements.
d. Nonoperating expenses in the GAAP financial statements.

8. Scholarships for students’ tuition and fees that are being paid from the university’s own resources should be reported as
a. A reduction of tuition and fee revenues.
b. Expenses in the GAAP financial statements.
c. Expenditures in the GAAP financial statements.
d. Nonoperating expenses in the GAAP financial statements.

9. Which of the following is not a common characteristic for the accounting and financial reporting of loan funds in colleges and universities that engage solely in business-type activities?
a. Often, loan funds are major activities that require professional management.
b. For internal purposes, loan funds are commonly accounted for within a separate fund.
c. For GAAP reporting purposes, loan funds are reported as part of restricted assets, not as a separate fund.
d. Changes in loan fund balances are reported as revenues and expenditures.

10. Colleges and universities that engage in both governmental and business-type activities are required to report which of the following external financial statements?
a. The same financial reporting standards that apply to general purpose governments apply to these colleges and universities.
b. Fund-based financial statements are required, but government-wide financial statements are not.
c. Government-wide and fund financial statements are required, exclusive of fiduciary funds, which are not reported for colleges and universities.
d. Government-wide financial statements are required, but fund financial statements are not.



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  • CreatedOctober 25, 2014
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