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$1)$ What type of college or university must report expenses by both natural classification and functional classification?

A$)$ Both private and public colleges and universities.

B$)$ Private colleges and universities.

C$)$ Public colleges and universities.

D$)$ Neither private nor public colleges and universities.

$2)$ Which of the following is not a step in the tuition and fee revenue recognition process for private colleges and universities:

A$)$ Identify the contract with the customer.

B$)$ Determine the transaction price.

C$)$ Identify the performance obligations in the contract.

D$)$ Allocate the performance obligations to the appropriate period.

$3)$ Cactus College, a small private college, received a research grant from NACUBO to study whether service efforts and accomplishments measures improve institutional performance. In accordance with FASB standards the grant would be reported as an increase in:

A$)$ Net assets without donor restrictions.

B$)$ Net assets with donor restrictions.

C$)$ Deferred revenue.

D$)$ Board$-$designated net assets.

$4)$ It would not make economic sense for a university to accept a split$-$interest agreement in which a fixed annuity is payable to the donor if:

A$)$ The donor has attached conditions to the gift.

B$)$ The university has no immediate need for the assets.

C$)$ The sum of future annuity payments plus interest thereon exceeds the fair market value of the assets.

D$)$ The present value of the future annuity payments and other liabilities exceed the fair market value of the assets.

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