Identifying the Appropriate GAAP. Section A lists a number of reporting requirements for colleges and universities. Section B lists the standard-setting body(ies) imposing the reporting requirements. Section A

_____ 1. Patents are classified as capital assets.

_____ 2. Sidewalks are classified as land improvements.

_____ 3. Revenues and expenses must be categorized as operating and nonoperating.

_____ 4. Tuition and fees must be shown net of any estimated uncollectible amounts.

_____ 5. Expenses must be reported by program and support (management and general, and fund-raising) function classifications.

_____ 6. Statement of cash flows must be prepared using the direct method.

_____ 7. The purchase of a building is reported as an investing activity on the statement of cash flows.

_____ 8. The receipt of student deposits for housing is reported as a liability, Deposits Held in Custody for Others.

_____ 9. The cash from a debt issuance is reported in the capital and related financing activities section on the statement of cash flows. _____10. The collection of historical first editions can be reported as a note rather than on the face of the financial statement provided certain conditions are met.

Section B FASB standards GASB standards FASB and GASB standards Required Using the choices provided in Section B, identify whether the reporting requirement listed in Section A is a FASB standard, a GASB standard, or both a FASB and a GASB standard.