Which of the Following Statements Is True

question 30

Multiple Choice

Which of the following statements is true?

• A) All colleges and universities report under the same GAAP guidelines.
• B) Private colleges and universities must report using FASB guidance. Public colleges and universities are permitted to follow either the FASB guidance or the GASB guidance.
• C) Private colleges and universities must report using the FASB guidance. Public colleges and universities must report using GASB guidance.
• D) Public colleges and universities must report as special purpose governments engaged only in business-type activities.

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Definitions:

Third Parties

Individuals or entities that are not directly involved in a legal agreement or transaction but may be affected by it or have an interest in its outcome.

Seller's Warranties

Guarantees made by a seller regarding the condition, quality, or title of the goods being sold.

Puffing

An exaggerated or hyperbolic statement made by a seller about the quality of goods, often considered a subjective opinion rather than a factual claim.

Exaggerations

Statements or claims not supported by facts, or the act of making something seem greater or more important than it actually is.