A State University Receives an Appropriation for from the State

question 5

Multiple Choice

A state university receives an appropriation for from the state for capital projects of $5 million and a state appropriation for other purposes of $20 million. How should the amounts received be reported in the university's statement of revenues, expenses, and changes in net position?

• A) Operating revenues of $20 million and nonoperating revenues of $5 million.
• B) Operating revenues of $20 million and capital contributions of $5 million.
• C) Nonoperating revenues of $20 million and capital contributions of $5 million.
• D) Nonoperating revenues of $25 million.

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Definitions:

Public Good

A product or service that is available for all to consume, regardless of who pays for it, characterized by non-excludability and non-rivalry.

Public Good

Goods or services made available to all individuals within a society free of charge, supplied by the government or by private non-profit entities.

Private Good

A good or service that is individually consumed and that can be profitably provided by privately owned firms because they can exclude nonpayers from receiving the benefits.

Nonpayers

Individuals who benefit from goods or services without directly contributing to the cost, often associated with public goods.