Which of the following statements is true regarding public colleges and universities choosing to report as special-purpose entities engaged in business-type activities only?
A) Endowments would be reported in the Statement of Net Assets as Net Assets Restricted-Nonexpendable
B) Capital appropriations from state governments are shown, in the Statement of Revenues, Expenses and Changes in Net Assets, as a category separate from revenues
C) Both of the above
D) Neither of the above

Question

Quizplus · Accepted Answer

Option A is true because when a public college or university reports as a special-purpose entity engaged in business-type activities only, any endowments would be reported in the Statement of Net Assets as Net Assets Restricted-Nonexpendable. Option B is also true because capital appropriations from state governments are shown as a separate category in the Statement of Revenues, Expenses and Changes in Net Assets when a public college or university chooses to report as a special-purpose entity engaged in business-type activities only. Therefore, both options A and B are correct.

Which of the Following Statements Is True Regarding Public Colleges