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For purposes of external reporting private colleges and universities

28/04/2021 Client: muhammad11 Deadline: 2 Day

Select the best answer.
1. For purposes of external reporting, private colleges and universities
a. Must adhere to all applicable FASB pronouncements
b. Must adhere to all applicable GASB pronouncements
c. Can opt to follow either all applicable FASB or all applicable GASB pronouncements
d. Must follow all applicable FASB pronouncements issued prior to November 30, 1989, and either all or none of the GASB pronouncements subsequent to that date

2. For purposes of external reporting, a public college or university
a. Must report as if it were a general-purpose government
b. May report as if it were a comparable private college or university
c. May report as a special-purpose government engaged exclusively in business-type activities
d. 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

3. Public universities should report state appropriations as
a. operating revenues
b. non-operating revenues
c. noncapital revenues
d. special revenues

4. 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 as
a. unrestricted
b. temporarily restricted
c. permanently restricted
d. either unrestricted or temporarily restricted depending on applicable state law

5. For purposes of internal reporting Briggs College accounts for its bookstore as an auxiliary enterprise. The college should classify the store's inventory as
a. unrestricted assets
b. temporarily restricted assets
c. auxiliary unit assets
d. component unit assets

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