Question: The nancial statements that follow were adapted from those of

The financial statements that follow were adapted from those of the University of Arizona. Both the statement of changes in fund balances and the notes to the statements have been omitted. Moreover, the statements show only the combined ‘‘totals’’ columns, whereas the actual statements are multi-columned, indicating the various restrictions placed upon the university’s resources. Also, a few of the line items have been aggregated, and the dates have been changed.

1. Based on the information included in the financial statements, respond as best you can to the following questions. If you believe the data in the financial statements are inadequate to answer the questions, then indicate what additional information you would like and where you would most likely find it.
a. Were the accomplishments of the university greater or fewer in 2015 than in 2014?
b. Did the university achieve its goals more efficiently in 2015 than in 2014?
c. Are the university’s physical facilities adequate for the next two years? Ten years?
d. Did the university’s long-term financial position improve or deteriorate between year-end 2014 and year-end 2015, taking account of the fiscal demands that will be placed upon it in the future?
e. Will the university be able to satisfy its short-term demands for cash?
2. Review the GASB and FASB objectives of financial reporting. Are any of the preceding questions inconsistent with those objectives? Comment on the extent to which conventional financial statements satisfy the GASB and FASB objectives and what additional types of information they will likely have to incorporate in order to satisfy theseobjectives.
View Solution:

Sale on SolutionInn
  • CreatedAugust 13, 2014
  • Files Included
Post your question