Which of the Following Is True with Respect to Public

question 74

Multiple Choice

Which of the following is true with respect to public four-year higher education institutions (public colleges) ?

• A) Sometimes, but not always public colleges are included as component units in the state CAFR
• B) Revenue sources for public colleges include tuition and fees, state appropriations and donations. All other income is reported as unrelated business income.
• C) No public colleges have the power to issue debt; it must be issued by the state as general obligation debt.
• D) Public colleges may not choose to report as special-purpose entities engaged only in business-type activities.

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Definitions:

Encumbrance Fund

A fund set aside or restricted for specific purposes, often used in government accounting to represent money that is allocated for certain obligations or projects.

Capital Assets

Long-term assets that are significant in value and are used in the operations of a business, not easily convertible to cash.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Donated Materials

Items or supplies given to an organization for free, often recognized as income at their fair value in the period received and reported in the financial statements.