GASB Accounting and Reporting Standards Applicable to Public Colleges and Universities

question 11

Multiple Choice

GASB accounting and reporting standards applicable to public colleges and universities:

• A) Are now the same as FASB standards to permit comparability between public and private colleges and universities.
• B) Permit public colleges and universities to use the AICPA model which differs substantially from the reporting model used by private colleges and universities subject to FASB jurisdiction.
• C) Permit public colleges and universities to optionally follow FASB standards.
• D) Differ in some significant ways from FASB standards applicable to private colleges and universities.

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Definitions:

Project's Cash Flows

The expected movement of cash associated specifically with a project, including both inflows and outflows.

Shareholders Wealth

The total value of an investment in a company, determined by the market price of the company's shares, which shareholders seek to maximize through investment decisions.

Payback Policy

A company's strategy for determining the timeframe within which an investment recovers its initial cost out of the cash inflows that it generates.

Mutually Exclusive

Events or choices that cannot occur at the same time, requiring a selection to be made between them.