Which of the Following Would Not Be Correct with Respect

question 49

Multiple Choice

Which of the following would not be correct with respect to accounting for colleges and universities under the jurisdiction of the FASB?

• A) If both unrestricted and restricted resources are available for a restricted purpose, the GASB requires that the institution recognize the use of unrestricted resources first.
• B) Accrual accounting is used. Revenues and expenses are reported at gross amounts and gains and losses are reported net.
• C) Expenses are reported by function, either in the statements or in the notes.
• D) If an institution decides not to capitalize museum and other inexhaustible collections, note disclosures are required regarding the collections.

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Definitions:

Heat Waste

Unwanted or unusable heat energy produced by industrial processes or energy production, which is often released into the environment.

Power Plants

Industrial facilities where electricity is generated from primary energy sources, such as coal, natural gas, nuclear, solar, or wind energy, through various technological processes.

Isolated

Being in a state of separation from others; not connected to, interacting with, or influenced by others or by external factors.

Safe

Protected from or not exposed to danger or risk; not likely to be harmed or lost.