Which of the Following Statements Is True Regarding Public Colleges

question 77

Multiple Choice

Which of the following statements is 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

---

Definitions:

Incidental Damages

Compensation for commercially reasonable expenses incurred as a result of the other party's breach of contract.

Expenses Saved

Costs that are avoided due to an action not taken or a change in circumstances.

Seller Resells

The act of selling a product or service again, typically after buying it from the original seller or manufacturer.

In Transit

Describes goods that are currently being transported from one location to another.