Which Financial Statements Are Required for Nongovernment, Not-For-Profit Colleges and Universities

question 36

Multiple Choice

Which financial statements are required for nongovernment, not-for-profit colleges and universities?

• A) Balance sheet, statement of revenues, expenditures, and other changes, and statement of cash flows.
• B) Balance sheet, statement of revenues, expenses, and changes in net assets, and statement of cash flows.
• C) Balance sheet, statement of revenues, expenses, and changes in net assets, and statement of changes in net assets.
• D) Balance sheet, statement of activities, and statement of cash flows.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the price paid for using a lender's money or credit.

Note Payable

A written promise to pay a specific amount of money, usually with interest, by a certain date to a designated party.

Accrued Interest

Interest that has been earned but not yet paid, recognized as an asset or liability prior to the exchange of cash.

Social Security

A government program that provides financial assistance to individuals during retirement, disability, or upon the death of a breadwinner.