Which of the Following Is True with Respect to Public

question 43

Multiple Choice

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

• A) Revenue sources for public colleges include tuition and fees, state appropriations and donations. All other income is reported as unrelated business income.
• B) Many institutions have most of their restricted resources managed by related entities, known as foundations.
• 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:

Residual Value

The estimated value that an asset will have at the end of its useful life.

Useful Life

The estimated duration for which an asset is expected to be functional and economically viable for its intended purpose.

Periodic Depreciation

The allocation of an asset's cost over its useful life, recognized as an expense on the income statement at regular intervals, typically annually.