A. Answer the following multiple choice questions and explain why you selected the choice that you did.

1. In accordance with GASB 35, a public college or university that chooses to report only business-type activities should present only the financial statements required for a. Enterprise funds b. Government funds c. Internal service funds d. Enterprise and internal service funds

2. In accordance with GASB 35, a public college or university that chooses to report both governmental and business-type activities should report

Fund financial statements Government-wide financial statements a. No Yes b. Yes No c. Yes Yes d. No No

3. A public college had tuition and fees of $20,000,000. Scholarships given to students (for which no services were required) amounted to $1,000,000. Employee discounts ( which were provided in exchange for services) amounted to $2,000,000. The amount to be reported as net tuition and fees by the public college would be a. $20,000,000 b. $19,000,000 c. $18,000,000 d. $17,000,000

4. Which of the following is true regarding the Statement of Revenues, Expenses, and Changes in Net Assets for a public college choosing to report as a special-purpose entity engages in business-type activities only? a. State appropriations should be reported as nonoperating income. b. An operating income figure must be displayed. c. Both contributions for plant and for endowment purposes must be reported separately after both operating and nonoperating revenues and expenses. d. All of the above.