COLLEGE ACCOUNTING FINAL PAPER
FULL QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED
●● 2. Private colleges and universities are (primarily) subject to
financial reporting standards issued by?
A) FASB.
B) GASB.
C) AICPA.
D) None of the above.
Answer: A) FASB.
●● 3. Public colleges and universities are (primarily) subject to financial
reporting standards issued by:
A) FASB.
B) GASB.
C) AICPA.
D) None of the above.
Answer: B) GASB.
●● 4. Private universities follow the authoritative standards of _____
and use the _____ basis of accounting.
,A) FASB, Accrual.
B) FASB, Modified-accrual.
C) GASB, Accrual.
D) GASB, Modified-accrual.
Answer: A) FASB, Accrual.
●● 5. With respect to public colleges, which of the following is not
correct?
A) GASB requires public colleges to report long-term debt on the
Statement of Net Position, to accrue interest and amortize debt discount
and premium.
B) GASB requires public colleges to report capital assets on the
Statement of Net Position, to expense depreciation and to record gains or
losses on disposals of capital assets.
C) Cash received under Pell Grants is treated as held for the student in
an agency relationship with offsetting asset and liability balances.
D) All of the above are correct
Answer: C) Cash received under Pell Grants is treated as held for the
student in an agency relationship with offsetting asset and liability
balances.
●● 6. Which of the following statements is true regarding accounting
and financial reporting for public colleges and universities?
A) Public colleges and universities may choose to report in the same
manner as private colleges and universities, using FASB standards.
, B) Public colleges and universities may choose to report as special-
purpose entities.
C) Both A and B are true.
D) Neither A nor B is true.
Answer: B) Public colleges and universities may choose to report as
special-purpose entities.
●● 7. Which of the following is not true regarding the Statement of
Revenues, Expenses and Changes in Net Position for a public college?
A) The accrual basis of accounting is used to measure revenues and
expenses.
B) Encumbrances are recorded at the time purchase orders are issued.
C) Depreciation expense is recorded.
D) All of the above are true.
Answer: B) Encumbrances are recorded at the time purchase orders are
issued.
●● 8. Which of the following would be true regarding the Statement of
Net Position for a public college?
A) Both current and long-term assets and liabilities are presented
B) The net asset categories are: net investment in capital assets,
restricted and unrestricted.
C) Both of the above are true.
D) Neither of the above is true.
FULL QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED
●● 2. Private colleges and universities are (primarily) subject to
financial reporting standards issued by?
A) FASB.
B) GASB.
C) AICPA.
D) None of the above.
Answer: A) FASB.
●● 3. Public colleges and universities are (primarily) subject to financial
reporting standards issued by:
A) FASB.
B) GASB.
C) AICPA.
D) None of the above.
Answer: B) GASB.
●● 4. Private universities follow the authoritative standards of _____
and use the _____ basis of accounting.
,A) FASB, Accrual.
B) FASB, Modified-accrual.
C) GASB, Accrual.
D) GASB, Modified-accrual.
Answer: A) FASB, Accrual.
●● 5. With respect to public colleges, which of the following is not
correct?
A) GASB requires public colleges to report long-term debt on the
Statement of Net Position, to accrue interest and amortize debt discount
and premium.
B) GASB requires public colleges to report capital assets on the
Statement of Net Position, to expense depreciation and to record gains or
losses on disposals of capital assets.
C) Cash received under Pell Grants is treated as held for the student in
an agency relationship with offsetting asset and liability balances.
D) All of the above are correct
Answer: C) Cash received under Pell Grants is treated as held for the
student in an agency relationship with offsetting asset and liability
balances.
●● 6. Which of the following statements is true regarding accounting
and financial reporting for public colleges and universities?
A) Public colleges and universities may choose to report in the same
manner as private colleges and universities, using FASB standards.
, B) Public colleges and universities may choose to report as special-
purpose entities.
C) Both A and B are true.
D) Neither A nor B is true.
Answer: B) Public colleges and universities may choose to report as
special-purpose entities.
●● 7. Which of the following is not true regarding the Statement of
Revenues, Expenses and Changes in Net Position for a public college?
A) The accrual basis of accounting is used to measure revenues and
expenses.
B) Encumbrances are recorded at the time purchase orders are issued.
C) Depreciation expense is recorded.
D) All of the above are true.
Answer: B) Encumbrances are recorded at the time purchase orders are
issued.
●● 8. Which of the following would be true regarding the Statement of
Net Position for a public college?
A) Both current and long-term assets and liabilities are presented
B) The net asset categories are: net investment in capital assets,
restricted and unrestricted.
C) Both of the above are true.
D) Neither of the above is true.
