Concept explainers
Identify the financial statement that should be prepared by a private college or university and public college or university.
Explanation of Solution
As per FASB (Financial Accounting Standard Board) the private colleges and universities are required to prepare
Moreover, they have greater flexibility like business organizations for the preparation of financial statements. Thus, the private universities and colleges can prepare either multi or single-step statements of activities and can prepare statement of cash flows using direct or indirect method.
In case of public colleges and universities, GASB (Governmental Accounting Standard Board) standards state that such institutions has to prepare balance sheet or statement of net position, statement of revenues, expenses, and changes in net position, and statement of cash flows.
GASB does not permit an option of flexibility for public colleges and universities with respect to the preparation of financial statements. For Example: As per the standards, these institutions are required to report operating and non-operating activities separately under the statement of revenues, expenses, and changes in net position. Therefore, the public universities has to report the statement of cash flows using direct method.
Want to see more full solutions like this?
Chapter 15 Solutions
ACCT GOV.+NFP ENTITIES LOOSELEAF W/CONN.
- Provide correct answer general accountingarrow_forwardI want answerarrow_forwardTatum Company has four products in its inventory. Information about ending inventory is as follows: Product Total Cost Total Net Realizable Value 101 $ 146,000 $ 113,000 102 108,000 123,000 103 73,000 63,000 104 43,000 63,000 Required: Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.arrow_forward
- Financial accounting questionarrow_forwardSooner industries charges a price of solve this question answer general Accountingarrow_forwardBright Printing uses process costing. Department A had 2,000 units in beginning work in process (60% complete), added 8,000 units, and had 1,500 units in ending work in process (40% complete). If total processing costs were $84,000, Give the cost per equivalent unit.arrow_forward
- Sweet Treats Bakery bought 3 mixers: first for $2,000, second for $2,400, and third for $2,800. A bulk purchase discount of 15% was applied to the total purchase. Calculate the net cost of equipment after discount. Accurate Answerarrow_forwardMCQarrow_forwardPlease provide this question solution general accountingarrow_forward
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning