Ex$.13-1$

Select the best answer.

For purposes of external reporting, private colleges and universities

must adhere to all applicable FASB pronouncements.

must adhere to all applicable GASB pronouncements.

can opt to follow either all applicable FASB or all applicable GASB pronouncements.

must follow all applicable NACUBO pronouncements.

For purposes of external reporting, a public college or university

must report as if it were a general$$purpose government.

may report as if it were a comparable private college or university.

may report as a special$$purpose government engaged exclusively in business$$type activities.

may report in accordance with the AICPA college and university model if it had adhered to that model prior to the issuance of GASB Statement No$.35.$

Public universities should report state appropriations as

operating revenues.

nonoperating revenues.

noncapital revenues.

special revenues.

Coleman College, a not$$for$$profit institution, issued $$20$ million in revenue bonds. Per the terms of the bond indenture, the college must maintain a cash reserve of $$800,000$which is equal to six months of interest. The cash that is set aside should be classified for external purposes as

without donor restrictions.

with donor restrictions.

prepaid expense.

either without donor restrictions or with donor restrictions depending on applicable state law.

For purposes of internal reporting Briggs College accounts for its bookstore as an auxiliary enterprise. For purposes of external reporting the college should classify the store's inventory as

special$$purpose assets.

assets with donor restrictions.

current assets.

component unit assets.

A government university receives a grant of $$2,000,000$ to improve its basketball arena. In its statement of cash flows the grant should be shown as a cash inflow from

noncapital financing activities.

capital financing activities.

operating activities.

investing activities.

A not$$for$$profit university receives a contribution without donor restrictions of $$200,000.$ In its statement of cash flows, the contribution should be shown as a cash inflow from

noncapital financing activities.

capital financing activities.

operating activities.

investing activities.

Which of the following expenses would least likely be a line item on the statement of activities of a not$$for$$profit college?

instruction

salaries and wages

auxiliary enterprises

student services

A public college should most likely report its athletic foundation as which of the following in its financial statements under GASB $39$:

Student service

Component unit

Fund from external agency

Affiliated organization

If a university receives a grant to test a product under a federal contract, but the government retains the patent to the product, the grant should be classified as a$($n$)$:

nonexchange transaction.

exchange transaction.

contributed service.

loan activity.