An Accountant Has Encountered a Perplexing Financial Reporting Issue Related

question 39

Multiple Choice

An accountant has encountered a perplexing financial reporting issue related to the private college for which he is preparing financial statements.The issue is not specifically addressed by FASB Statements.To what standards would the accountant first look for guidance?

• A)GASB Statements.
• B)AICPA accounting and auditing guide, Not-for-Profit Organizations.
• C)AICPA accounting and auditing guide, Audits of Colleges and Universities and/or AICPA SOP 74-8, Financial Accounting and Financial Reporting by Colleges and Universities.
• D)College textbooks.

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Definitions:

Accountants

Professionals who perform financial functions related to the collection, accuracy, recording, analysis, and presentation of a business, organization, or individual's financial operations.

Tax Code

The system of laws and regulations that govern the levying of taxes on individuals, businesses, and other entities, which outlines the rates, exemptions, and enforcement policies.

Real Incomes

Income of individuals or nations adjusted for inflation, reflecting the purchasing power of the income.

Nominal Interest Payments

The amounts paid by borrowers to lenders as the cost of borrowing money, not adjusted for inflation.