Concept explainers
Introduction:
Loan funds:
Loan funds are established to account for resources that are available for loans primarily to students and possibly to faculty and staff. A separate fund is used because of large amounts of federal and state resources made available to universities for student loans. Loan funds are self-perpetuating, with repayments of principal and the excess interest is collected over costs incurred becoming the base for additional loans. Both principal and earnings must be available for loan purposes.
The resources of loan funds consist of mainly gifts restricted for the loan and unrestricted current fund resources transferred by authorization of the governing board. Although assets are not segregated by restriction, the net assets must reveal their restricted and unrestricted portions.
The best option.
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Advanced Accounting
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- Which of the following is true regarding financial reporting under GASB Statement No. 34?a. A comparison of budget and actual revenues and expenditures for the general fund is required as part of the basic financial statements.b. Infrastructure must be recorded and depreciated as part of the statement of activities in the basic financial statements.c. Public colleges and universities are to report in exactly the same manner as private colleges and universities.d. Special purpose governments that have only business-type activities are permitted to report only the financial statements required for enterprise funds.arrow_forward1. An account for expenditures does not appear in which fund? (a) Capital Projects. (b) Enterprise. (c) General. (d) Special Revenue. 2. Which of the following receipts is properly recorded as unrestricted current funds on the books of a university? (a) Tuition. (b) Student laboratory fees. (c) Housing fees. (d) Research grants. 3. The current funds group of a NFP private university includes which of the following? Annuity Funds Loan Funds (a) Yes Yes (b) Yes No (c) No No (d) No Yesarrow_forwardWhat is the most common form for the financial statements prepared by public colleges and universities?arrow_forward
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