State Educational Appropriations Received by a Public University Are Classified

question 26

Multiple Choice

State educational appropriations received by a public university are classified as which of the following on the statement of revenues, expenses, and changes in net position?

• A) Nonoperating revenue.
• B) Operating revenue.
• C) Other financing source.
• D) Increase in unrestricted net position.

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Definitions:

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants and cleaning supplies used in a factory.

FIFO Method

An inventory valuation method where the first items placed in inventory are the first ones sold or used out; FIFO stands for “First In, First Out”.

Work In Process

This term is often used interchangeably with Work In Progress, denoting goods that are partially completed in the manufacturing process.

Equivalent Unit Calculations

A method in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units.