1.Coleman College, a notforprofit institution, issued $20 million in revenue bonds. Per the terms of the bond indenture, the college must maintain a cash reserve of $800,000which is equal to six months of interest. The cash that is set aside should be classified for external purposes as A.without donor restrictions. B.with donor restrictions. C. prepaid expense. D. either without donor restrictions or with donor restrictions depending on applicable state law.

2. For purposes of internal reporting Briggs College accounts for its bookstore as an auxiliary enterprise. For purposes of external reporting the college should classify the store's inventory as A. specialpurpose assets. B. assets with donor restrictions. C. current assets. D. component unit assets.

3. A government university receives a grant of $2,000,000 to improve its basketball arena. In its statement of cash flows the grant should be shown as a cash inflow from A. noncapital financing activities. B. capital financing activities. C. operating activities. D. investing activities.

4. A notforprofit university receives a contribution without donor restrictions of $200,000. In its statement of cash flows, the contribution should be shown as a cash inflow from A. noncapital financing activities. B. capital financing activities. C. operating activities. D. investing activities.

5. Which of the following expenses would least likely be a line item on the statement of activities of a notforprofit college? A. instruction B. salaries and wages C. auxiliary enterprises D. student services

6. A public college should most likely report its athletic foundation as which of the following in its financial statements under GASB 39: A.Student service B. Component unit C. Fund from external agency D. Affiliated organization