Jones College, a Public Institution of Higher Education, Must Prepare

question 50

Multiple Choice

Jones College, a public institution of higher education, must prepare financial statements

• A) As if the college was an enterprise fund.
• B) Following the same rules as state and local governments.
• C) According to GAAP.
• D) As if the college was a fiduciary fund.
• E) In the same manner as private colleges and universities.

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Definitions:

Current Liabilities

Obligations or debts that a company needs to settle within one fiscal year or its operating cycle, whichever is longer.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts, or financial statements, is represented as a proportion of the total account.

Net Income

The amount by which revenues exceed expenses.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company.