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

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Definitions:

Revenue Accounts

Accounts that track the income a company generates from its normal business activities, such as sales of goods or services.

Retained Earnings

The portion of a company's profits that is kept or retained rather than paid out as dividends to shareholders, often used for reinvestment in the business.

Dividends Account

An account that records the amount of dividends declared by a company to be distributed to its shareholders.

Long-term Investments

Long-term investments are assets that a company intends to hold for more than one fiscal year, including stocks, bonds, real estate, and other securities.