1) The current and long-term portions of General Long-term Debt are normally reported
in a debt service fund.
2) Investment Trust Funds account for only the external portion of investment pools.
3) Private colleges and universities use the economic resources measurement focus and
the accrual basis of accounting.
4) A special-purpose government engaged in business-type activities financed in whole
or part by fees charged to external parties are usually reported in fiduciary funds.
5) Premiums generated from the issuance of bonds for a capital projects fund are
generally transferred to the Debt Service Fund.
6) Private colleges and universities and investor-owned proprietary schools report the
same categories of net assets.
7) GASB requires that the reconciliation of income and cash flows from operations
starts with operating income.
8) Private colleges and universities are required to present a Statement of Cash Flows
using the direct method.
9) Resources appropriately reported within proprietary or fiduciary funds are included
in special revenue funds.
10) Capital projects funds use the financial resources measurement focus and accrual
basis of accounting.
11) Unlike internal service funds, it is frequently desirable for enterprise funds to
operate at a profit.
12) A tuition waiver for a student who works as a graduate assistant is treated as
compensation expense.
13) The Sarbanes Oxley Act is intended to improve corporate governance and limit the
services accounting firms may provide to their audit clients.
14) FASB requires multiyear pledges to be recorded at the present value of the future
collections.
15) Special assessments may be levied to finance construction projectsor to provide
current services.
16) Health care organizations that are privately owned and operated to provide a return
to investors follow FASB standards excluding those standards specifically for
not-for-profits.
17) All of the governmental funds except permanent funds use the modified accrual
basis of accounting