Not for Profit Entities

Assume that a private university collects tuition and fees at the beginning of summer school, in which two weeks are offered in the second fiscal year. According to the approach recommended by the National Association of College and University Business Officer (NACUBO), the university would:

• Record the collection as a debit to Cash and a credit to Restricted current revenue for the entire amount of the collections

• record the collection as a debt to Cash and a credit to deferred Revenue for the entire amount of the collections

• account for the entire tuition and fees as revenue in the first fiscal period

• Recognize revenue in the first fiscal year for two-eights of the tuition and fees and record six-eights of the collections as a deferred revenue

For the year ended June 30, 20X9, a university assessed its students a total of Php4,0000,000.00 for tuition and fees. included in this amount was Php3,000,000.00 of tuition remissions awarded to graduate teaching assistants, and Php150,000.00 of scholarships awarded to undergraduate students. Tuitions and fees totaling Php3,550,000.00 were collected during the year ended June 30, 20X9. What amount be reported in the fund without donor restrictions as net revenue from tuition and fees for the year ended June 30. 20X9?

• Php3,850,000.00

• Php3,700,000.00

• Php3,550,000.00

• Php4,000,000.00

A private college received an offer from a CPA who is alumnus to teach a one-semester advance accounting course at no cost. ASC 958 prescribes that this contribution of service:

• to be recorded as an asset with equivalent amount recorded in the unrestricted fund balance

• to be recorded as revenue with an equivalent amount recorded as an expenditures

• need not be recorded if the service is for a period less than one academic year

• need only be disclosed in the footnotes to the financial statements

On the statement of operations prepared for a private, NFP hospital, patient service revenue earned during the year is reported net of amounts for which of the following items?

I. Contractual adjustments

II. Bad Debt expense

• I only

• Neither I nor II

• II only

• I and II

Bridger Hospital which is operated by a religious organization, provides charity care for the indigent living in the region served by the hospital. How should Bridger report the amount of its charity care on its financial statements?

• As revenue without donor restrictions on the statement of operations

• in the notes to financial statements only

• As revenue with donor restrictions on the statement of operations

• As net patient service revenue and as an expense, equal to the net patient service revenue, on the statement of operations

The governing board of a hospital operated by a religious organization designated Php3,000,000.00 of cash to be used for plant expansion. The cash was invested in stocks and bonds which earned Php250,000.00 of dividend and interest income. The income from investment should be reported on the hospital's statement of operations as an increase in:

• Either net assets with donor restrictions or net assets without donor restrictions

• Fund balance in the general fund

• Operating Income

• Net assets with donor restrictions

A voluntary health and welfare organization unrestricted cash donations of Php20,000.00 from donors who attended a dinner held for the benefit of the organization. The cost of the dinner, including room rental and other expenses, amounted to Php7,000.00. On the statement of activities prepared for the voluntary health and welfare organization, the expenses of the dinner should be:

• netted against the Php20,000.00 of contribution revenue

• reported as fundraising cost

• reported as programmatic expenses

• Reported as management and general expenses