Which of the following is true regarding accounting and financial reporting for private colleges and universities?
A) Pell Grants are reported as nonoperating revenue
B) Revenues from residence halls, dining services and bookstores are reported as Auxiliary Enterprises - within nonoperating revenue.
C) Expenses associated with central management, planning and administration are classified as Institutional Support - within income from operations
D) All of the above are all true.

Question

Quizplus · Accepted Answer

Expenses associated with central management, planning and administration are classified as Institutional Support - within income from operations
Pell grants are recorded as nonoperating revenue for a public institution. Private institutions treat Pell grants as resources held for the student in an agency relationship and record an offsetting asset and liability. Auxiliary enterprise activities represent revenues and expenses related to units of the college that provide services to students on a user fee basis and is classified as operating revenue.

Which of the Following Is True Regarding Accounting and Financial