Chapter 19, Problem 19.3Q

To determine

Accounting for public and privateUniversities: public and private universities being a non-profit entities but require financial resources to run the activities and report it as per regulations. The primary source of revenue for these institutions depends on whether it is a public or private university. Most private institutions depend heavily on student’s tuition as source of revenue, while public universities receive funds from state as well as student’s tuition. Public universities have to follow guidelines issued by GASB and private universities has to follow FASB guidelines for the purpose of accounting

To explain:the difference in financial reporting for public and private universities.