Not-For-Profit Colleges and Universities Are Required to Follow the Accounting

question 10

Multiple Choice

Not-for-profit colleges and universities are required to follow the accounting standards of which standard-setting body?

• A)FASB
• B)GASB
• C)GASAC
• D)FASAB

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Definitions:

Accounts Receivable

The money owed to a business by its clients for goods or services delivered but not yet paid for.

Sales Discounts

A reduction in the price of goods or services offered by a seller to a buyer, typically used to encourage prompt payment or to reward customers for bulk purchases.

Operating Expenses

Operating expenses refer to the costs associated with the day-to-day operations of a business, excluding cost of goods sold.

Sales Returns

Sales returns refer to the process of returning previously purchased goods by a customer to the seller, often resulting in a refund to the customer and a reduction in sales for the business.