Which of the Following Statements Is True Regarding Accounting and Financial

question 32

Multiple Choice

Which of the following statements is true regarding accounting and financial reporting for public colleges and universities?

• A) Public colleges and universities may choose to report in the same manner as private colleges and universities, using FASB standards
• B) Public colleges and universities may choose to report as special-purpose entities engaged in both governmental and business-type activities
• C) Both of the above.
• D) Both of the above

---

Definitions:

Accelerated Depreciation

An accounting method that allows for the allocation of larger depreciation amounts in the initial years of an asset's life, reducing its taxable income.

Capital Funds

Capital funds are financial resources that a company or organization uses for long-term investment, expansion, and operational purposes.

Opportunity Costs

The cost of an alternative that must be forgone to pursue a certain action. Put differently, the benefits you could have received by taking an alternative action.

WACC

Weighted Average Cost of Capital, the average rate of return a company is expected to pay to all its security holders, including equity and debt.