Which of the Following Would Not Be Correct with Respect

question 106

Multiple Choice

Which of the following would not be correct with respect to accounting for colleges and universities under the jurisdiction of the FASB?

• A) If both unrestricted and restricted resources are available for a restricted purpose, the FASB requires that the institution recognize the use of unrestricted resources first
• B) Accrual accounting is used. Revenues and expenses are reported at gross amounts and gains and losses are reported net.
• C) Expenses are reported by function, either in the statements or in the notes
• D) If an institution decides not to capitalize museum and other inexhaustible collections, note disclosures are required regarding the collections

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Definitions:

Concrete Operational Thought

A stage in Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events and understand the concept of conservation.

Conceptual Knowledge

The understanding of principles and relations among objects, facts, and ideas within a certain domain.

Declarative Knowledge

Knowledge that can be consciously recalled, such as facts and information.

Vegetation

Plant life or plant communities collectively, commonly referred to in terms of the physical environment they occupy.