1. A university that is considered a special-purpose government:
a. Is generally required to follow GASB standards
b. Is generally required to follow FASB standards
c. Should refer to the AICPA Audit and Accounting Guide for governmental colleges and universities
d. May choose whether to follow FASB, GASB, or AICPA guidelines
2. The operations of dormitories and dining halls for colleges and universities are reported as:
a. Operating income
b. Auxiliary operations
c. Restricted income
d. Specific-purpose income
3. A university that follows the AICPA college model for internal control may have all of the following funds, except:
a. Property, plant, and equipment
b. Loan
c. Life income
d. Endowment
4. Required financial statements for a private, nongovernmental not-for-profit college include which of the following?
a. A statement of cash flows
b. A statement of functional expenses
c. A statement of changes in fund balances
d. A statement of revenues, expenses, and other changes
5. Grant funds received from the federal government and remitted directly to students provide an example of:
a. An exchange transaction
b. An endowment
c. An agency transaction
d. A restricted contribution