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Finance

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1. Colleges and universities look to which standard-setting body for GAAP

2. Which of the following statements is prepared by both a private and public college or university?

3. Which of the following is a true statement about tuition revenue in a college or university?

4. A university expended $2,475,000 on a new parking facility. The transaction was reported as an investing activity on its direct method statement of cash flows. What type of university prepared the statement of cash flows?

5. Last year Zelnick College showed a positive revenue over expenses number for the first time in several years. The college is funded with contributions, grants, two government appropriations (state and local), and tuition and fees. Zelnick College is most likely what type of college?

6. Gresham College is a local private college. When reviewing the college’s financial reports, you would expect to see which of the following categories on its statement of assets and liabilities?

7. How would a university account for funds received from an external donor that are to be retained and invested, with the related earnings restricted to the purchase of library books?

8. Which of the following statements is incorrect concerning the financial reports of colleges and universities?

9. Many endowment management policies establish a spending rate for the college or university’s endowment funds. A spending rate is best defined as

10. Which of the following is a performance measure of an outcome?

11. Following are several transactions involving a university.
 

1. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $500,000 grant for wetlands research.
2. The university received a $500,000 endowment.
3. For the fiscal year, the university recorded $2,500,000 in tuition and fees revenue. Cash refunds of $325,000 were given.
4. The university provided $12,600 in tuition waivers for students with outstanding academic performance.
5. During the year, the university constructed a new street, to allow for the expansion of its student housing efforts. The cost of the street was $1,980,000.
6. The biology department spent $25,000 on wetlands research.
7. At year-end, $1,670 of estimated uncollectible tuition and fees was recorded. 

Required

1. Prepare journal entries to record the foregoing transactions, assuming the university is a private institution.

b. Prepare journal entries to record the foregoing transactions, assuming the university is a public institution.