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Ch 15 Exercise

Ch 15 Exercise

15-1. Identify the financial statements that must be prepared by a private college or university and those that must be prepared by a public college or university.

A public college or university could follow the FASB standards or GASB standards.

If the public college or university is following FASB standards they would prepare the following financial statements:

· Statement of Financial Position which shows net asset categories that are permanently restricted, temporarily restricted and unrestricted

· Statement of Activities which include changes to net assets and identifies is net assets are released from restricted

· Statement of Cash Flow which shows 3 categories of cash flow

If the public college or university is following GASB standards they would prepare the following financial statements:

· Statement of Net Position which shows net position classifications, net investment in capital assets both restricted and unrestricted

· Statement of Revenues, Expenses and Changes in Net Position which is categorized by operating and non-operating activities

· Statement of Cash Flows which shows 4 categories of cash flow and is prepared using the direct method

References

Lowensohn, S.L. and Reck, J.L.(2016). Accounting for governmental & nonprofit entities. (17ed.). McGraw-Hill Education.