1) What are the revenue-recognition criteria for expendable fund entities? How do these
criteria differ from revenue-recognition criteria for profit-oriented enterprises?
2) At State College, where football has long reigned asking and fans are near fanatical
in their attendance, the frenzy for football tickets has recently reached an all-time high.
With requests for home game tickets at an unprecedented level, prices on everything
from parking passes to hotel rooms to home rentals have soared beyond belief. Parking
passes were going for $500 on eBay, and hotel rates have doubledand in some cases
nearly tripledreaching as high as $650 per night at some hotels.
1> What are the moral or ethical issues in charging what people will pay for rooms and
tickets to at-tend a State College football game?
2> Why not let the economic forces of supply and demand determine prices in our
capitalistic system?
3) What assumptions must be made about the realization of undistributed subsidiary
income when the affiliates file separate income tax returns? Why? (Appendix)
4) Differentiate between forward-based derivatives and option-based derivatives.
5) What is the significance of the unreserved fund balance of an expendable fund
entity?