Select the best answer.

1. In June 2020, a public university bills and collects $30 million in tuition for the summer semester that runs from June 1 through July 15. In addition, in May and June it bills $200 million for the fall semester that runs from September 1 through December 15. Of this amount it collects only $80 million (expecting to collect the balance prior to September 1). In its statement of revenues and expenses for its year ending June 30, 2020 it should recognize as tuition revenue

A. $20 million

B. $30 million

C. $100 million

D. $110 million

2. In a particular year, a not-for-profit university receives $2 million in dividends and interest on an endowment, the income of which, per donor specification, must be used to provide scholarships to liberal arts students. During the year, it awards (and pays) scholarships of $1.9 million. In accord with a policy established by the universitys board of trustees, it adds the $0.1 million balance to the endowment fund to offset the impact of inflation. For that year the university may recognize

A. $1.9 million of revenue without donor restrictions and $0.1 million of revenue with donor restrictions.

B. $2.0 million of revenue without donor restrictions.

C. $1.9 million of revenue with donor restrictions and $0.1 of revenue without donor restrictions.

D. $2.0 million of revenue with donor restrictions.

3. A not-for-profit university operates its college bookstore as an auxiliary enterprise. During the year the store has revenues of $20 million and expenses of $18 million. In its statement of activities the university should report

1. operating revenues of $2 million.
2. operating revenues of $20 million.
3. nonoperating revenues of $2 million.
4. nonoperating revenues of $20 million.

4. In 2020, a government university was awarded a federal reimbursement grant of $9 million to carry out research. Of this, $6 million was intended to cover direct costs and $3 million to cover overhead. In a particular year, the university incurred $2 million in allowable direct costs and received $1.7 million from the federal government. It expected to incur the remaining costs and collect the remaining balance in 2021. For 2020 it should recognize revenues from the grant of

A. $1.7 million.

B. $2.0 million.

C. $3.0 million.

D. $9.0 million.

5. A not-for-profit university maintained an endowment of $400,000, the income of which was restricted for an annual conference on international relations. In a particular year, the market value of the endowment increased by $40,000. The university held a conference on international relations at a cost of $43,000. The university should report

1. no revenue and expenses without donor restrictions of $43,000.
2. revenues without donor restrictions of $40,000 and expenses without donor restrictions of $43,000.
3. revenues with donor restrictions of $40,000, expenses with donor restrictions of $40,000 and expenses without donor restrictions of $3,000.
4. revenues with donor restrictions of $40,000 and expenses without donor restrictions of $43,000.

6. Other factors held constant, which of the following colleges is likely to present the least risk that it will default on its bonds?

1. One that admits 98 percent of applicants
2. One that draws the majority of its students from overseas
3. One that prepares its students mainly for careers as automotive engineers
4. One that draws its student body almost exclusively from the top 5 percent of high school graduating classes throughout the country

7. Scholarships for which no services are recorded should be recorded as ______________ and scholarships for which services are required should be recorded as ______________

1. revenue deductions; expenses
2. expenses; revenue deductions
3. expenses; expenses
4. revenue deductions; revenue deductions

8. A public university had tuition and fees for the year ended June 30, 2020, in the amount of $18,000,000. Scholarships, for which no services were required, amounted to $1,400,000. Graduate assistantships, for which services were required, amounted to $1,300,000. The amount to be reported by the university as net tuition and fee revenue would be

1. $18,000,000
2. $16,700,000
3. $16,600,000
4. $15,300,000

9. During the year, Griffin Universitys board of trustees established a $200,000 fund to be retained and invested for scholarship grants. The fund earned $12,000, which had not been distributed by December 31. What amount should Griffin report in a Board designated (quasi) endowment funds net assets at December 31?

1. $0
2. $12,000
3. $200,000
4. $212,000

10. During the year, LeBlanc College received the following:

An unrestricted $70,000 pledge to be paid the following year

A $35,000 cash gift restricted by donors for study-abroad scholarships

A notice from a recent business school graduate that he has named the college as a beneficiary of $15,000 in his will

What amount of contribution revenue should LeBlanc College report in its statement of activities?

1. $35,000
2. $50,000
3. $105,000
4. $120,000