Are Public and Private Colleges and Universities Required to Report

question 18

Multiple Choice

Are public and private colleges and universities required to report depreciation expense in their financial statements?

• A)Public: No; Private: No
• B)Public: Yes; Private: Yes
• C)Public: Yes; Private: No
• D)Public: No; Private: Yes

---

Definitions:

Capitalization Of Interest

The process of adding accumulated interest to the principal balance of a loan, increasing the total amount owed.

Avoidable Interest

Interest cost on funds expended on a qualifying asset that could be avoided if the expenditure had not been made.

Economic Benefit

The gain received from a product or service, often measured in terms of increased utility or revenue, minus associated costs.

R&D Costs

Expenses incurred during the research and development phase aimed at producing new products or processes.