niversities. These alternatives include all of the following except: dopt FASB's requirements so that all colleges and universities (public and private) prepare comparable financial stateme pply a more traditional model focusing on fund financial statements and the wide variety of funds that such schools ofte mave to maintain. Create an entirely new set of financial statements designed specifically to meet the unique needs of public colleges and universities. Adopt the requirements issued by the Private Company Council (PCC) of the FASB.

niversities. These alternatives include all of the following except: dopt FASB's requirements so that all colleges and universities (public and private) prepare comparable financial stateme pply a more traditional model focusing on fund financial statements and the wide variety of funds that such schools ofte mave to maintain. Create an entirely new set of financial statements designed specifically to meet the unique needs of public colleges and universities. Adopt the requirements issued by the Private Company Council (PCC) of the FASB.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following is most likely to be true about the financial reporting of a public college or university? Choose the correct.a. It resembles the financial reporting of private colleges and universities.b. It will continue to use its own unique style of financial reporting.c. It resembles the financial reporting made by a proprietary fund within the fund financial statements for a state or local government.d. It will soon be reported using a financial statement format unique to the needs of public colleges and universities that GASB is scheduled to create.
Which of the following is most likely to be true about the financial reporting of a public college or university? It resembles the financial reporting of private colleges and universities. It will continue to use its own unique style of financial reporting. It resembles the financial reporting made by a proprietary fund within the fund financial statements for a state or local government. It will soon be reported using a financial statement format unique to the needs of public colleges and universities that GASB is scheduled to create.
As this and the previous chapter have discussed, public colleges and universities follow GASB standards. These schools have been directed to use the same reporting model as state and local governments. Such schools frequently classify themselves as special purpose governments consisting solely of business-type activities. In that way, they only need to produce fund financial statements as an enterprise fund.In contrast, private not-for-profit colleges and universities adhere to FASB Accounting Standards Codification® requirements and prepare financial statements. U.S. GAAP for public schools comes from GASB while, for private schools, it comes from FASB.Readers of college and university financial statements might want to compare the data presented by various institutions. This information is especially important to potential donors who are attempting to evaluate each school’s efficiency and effectiveness in utilizing the funding that it receives.Are decision makers well served by the…
Which of the following is true regarding financial reporting under GASB Statement No. 34?a. A comparison of budget and actual revenues and expenditures for the general fund is required as part of the basic financial statements.b. Infrastructure must be recorded and depreciated as part of the statement of activities in the basic financial statements.c. Public colleges and universities are to report in exactly the same manner as private colleges and universities.d. Special purpose governments that have only business-type activities are permitted to report only the financial statements required for enterprise funds.
Write a 700- to 1,050-word paper that analyzes the differences between generally accepted accounting principles for public and private colleges and universities. Explain why it is important to identify whether the institution is Public or Private. Clarify which of the two—public or private—follow the same reporting guidelines as nongovernmental not-for-profit organizations. Analyze, in general terms, the financial statements that must be prepared by a private college or university and those that must be prepared by a public college or university. Identify the major format differences in financial reporting for public and private colleges and universities. Formulate an opinion about which statement provides more transparent information regarding revenues and on the amounts of restricted resources.
What differences besides the names and contents of the three basic statements would a financial statement reader find between a public university and a private, nonprofit university?
1. An account for expenditures does not appear in which fund? (a) Capital Projects. (b) Enterprise. (c) General. (d) Special Revenue. 2. Which of the following receipts is properly recorded as unrestricted current funds on the books of a university? (a) Tuition. (b) Student laboratory fees. (c) Housing fees. (d) Research grants. 3. The current funds group of a NFP private university includes which of the following? Annuity Funds Loan Funds (a) Yes Yes (b) Yes No (c) No No (d) No Yes
University plant funds can readily be recast from an AICPA to a FASB presentation. A university maintains several plant funds as shown in the condensed balance sheets presented below. The fund structure and presentation are consistent with the AICPA college and university reporting model. Although this model has been superseded by FASB ASU 2014-09, Financial Statements of Not-for-Profit Organizations, it is still used by many colleges and universities for internal purposes. Plant Funds (in thousands) Unexpended plant funds Assets Cash $ 9,000 Investments 27,000 Total assets $ 36,000 Liabilities and fund balances Bonds payable $ 24,000 Fund balance Restricted by donors for specified projects $ 4,000 Not restricted by donors 8,000 12,000 Total liabilities and fund balances $ 36,000 Funds for renewals and replacements Assets Cash $ 4,500 Investments 85,100 Total assets $ 89,600 Liabilities and…
Choose the correct. Which of the following is true about the management’s discussion and analysis (MD&A)?a. It is an optional addition to the comprehensive annual financial report, but the GASB encourages its inclusion.b. It adds a verbal explanation for the numbers and trends presented in the financial statements.c. It appears at the very end of a government’s comprehensive annual financial report.d. It replaces a portion of the fund financial statements traditionally presented by a state or local government.
Choose the correct. The financial reporting for private not-for-profit entities primarily focuses on:a. Basic information for the organization as a whole.b. Standardization of fund information reported.c. Inherent differences of various not-for-profit entities that impact reporting presentations.d. Distinctions between current fund and noncurrent fund presentations.
What are the three basic financial statements required for private, nonprofit colleges and universities and what basis of accounting is used? What other statement is possible beyond these three to meet disclosure requirements?
What is the most common form for the financial statements prepared by public colleges and universities?