Which of the Following Statements Is (Are)true Regarding Public Colleges

question 38

Multiple Choice

Which of the following statements is (are) true regarding public colleges and universities choosing to report as special-purpose entities engaged in business-type activities only?

• A) Endowments would be reported in the Statement of Net Assets as Net Assets Restricted-Nonexpendable.
• B) Capital appropriations from state governments are shown, in the Statement of Revenues, Expenses, and Changes in Net Assets, as a category separate from revenues.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Simple Interest

Simple interest is interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Present Value

The present value of a sum of money or series of cash flows expected in the future, discounted at a certain rate of return.

Amortized Loan

A loan repaid in equal periodic amounts (or “killed off” over time).

Repayment Of Principal

The process of paying back the original amount borrowed in a loan, excluding any interest charges.