Question

Select the best answer for each of the following multiple-choice items dealing with universities:
1. Abbott Public University’s unrestricted current fund comprised the following:
Assets. . .. .... . .. .. .. .. . . . . . .. . . . . .. ... .. .. . . . . .. . . . . . .. ... $5,000,000
Liabilities (including deferred revenues of $100,000) . .. .... . .. .. . 3,000,000
The fund balance of Abbott’s unrestricted current fund was
a. $1,900,000.
b. $2,000,000.
c. $2,100,000.
d. $5,000,000.
2. The following receipts are among those recorded by Middleton Private College during
2019:
Unrestricted gifts . . . .. .. .. .... . .. .. .. .. . . . . . .. .. .. .. ... . . ..... $300,000
Restricted gifts (expended for current operating purposes) . . . . . . .. .. 100,000
Restricted gifts (not yet expended). .... .. .. . . .. . . . . . .. .. .. . .. . .... 600,000
The amount that should be included in revenues is
a. $300,000.
b. $700,000.
c. $900,000.
d. $1,000,000.
3. For the 2019 fall semester, Forest Public University assessed its students $6,000,000 (net of refunds), covering tuition and fees for educational and general purposes. However, only $5,700,000 was expected to be realized because tuition remissions of $80,000 were allowed to faculty members’ children attending Forest, and scholarships totaling $220,000 were granted to students. What amount should Forest include in educational and general current funds revenues from student tuition and fees?
a. $5,920,000
b. $6,000,000
c. $5,780,000
d. $5,700,000
4. Leaf Private College is sponsored by a religious group. Volunteers from this religious group regularly contribute their skilled services to Leaf and are paid nominal amounts to cover their commuting costs. If Leaf did not receive these volunteer services, it would have to purchase similar services. During 2019, the total amount paid to these volunteers was $10,000. The gross value of services performed by them, as determined by reference to lay-equivalent salaries, amounted to $400,000. What amount should Leaf record as expenses in 2019 for these volunteers’ services?
a. $410,000
b. $400,000
c. $10,000
d. $0
5. The following expenditures were among those incurred by Cheviot Public University during 2019:
Administrative data processing.. . .... .. .. . . .. . . . . . .. .. .. . .. . . $ 50,000
Scholarships and fellowships . .. . .... .. .. . . .. . . . . . .. .. .. . .. . . 100,000
Operation and maintenance of physical plant . . . . . . .. . . . . .. . .... 200,000
The amount to be included in the functional classification ‘‘Institutional Support’’ expenditures account is
a. $50,000.
b. $150,000.
c. $250,000.
d. $350,000.
6. On July 31, 2019, Sabio Public College showed the following amounts to be used for:
Renewal and replacement of college properties . . . .. .. . . .. ... .. .. $200,000
Retirement of indebtedness on college properties. . .. .. . . .. ... .. .. 300,000
Purchase of physical properties for college purposes,
but unexpended at July 31, 2019 . .. .. .. . . .. . .. . . .. .... ... .... 400,000
What total amount should be included in Sabio’s plant funds at July 31, 2019?
a. $900,000
b. $600,000
c. $400,000
d. $200,000
7. The following information pertains to interest received by Beech Public University from endowment fund investments for the year ended June 30, 2018:
What amount should be credited to Endowment Income for the year ended June 30, 2018?
a. $800,000
b. $375,000
c. $175,000
d. $100,000
8. Assets that the governing board of a public university, rather than a donor or outside agency, has determined are to be retained and invested for purposes other than loan or plant would be accounted for as
a. An endowment.
b. Unrestricted net assets.
c. Deposits held in custody for others.
d. Restricted net assets.
9. In 2017, the board of trustees of Bar Private University designated $300,000 from its current funds for college scholarships. Also in 2017, the university received a bequest of $500,000 from an estate of a benefactor who specified that the bequest was to be used for hiring teachers to tutor handicapped students. None of the bequest has been spent. What amount should be accounted for as restricted net assets?
a. $0
b. $300,000
c. $500,000
d. $800,000
10. Which of the following statements usually will not be included in the annual financial report of a public university engaged only in business-type activities?
a. Statement of activities
b. Statement of net assets
c. Statement of cash flows
d. Statement of revenues, expenses, and changes in net assets


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  • CreatedApril 13, 2015
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