Multiple Choice Questions Indicate the best answer for

each of
Multiple Choice QuestionsIndicate the best answer for each of the following:1. For the spring
semester of 20X4, Lane University assessed its students $3,400,000 (net of refunds) of tuition
and fees for educational and general purposes. However, only $3,000,000 was expected to be
realized because scholarships totaling $300,000 were granted to students, and tuition
remissions of $100,000 were allowed to faculty members’ children who were attending Lane.
How much should Lane include in educational and general revenues from student tuition and
fees?a. $3,400,000b. $3,300,000c. $3,100,000d. $3,000,0002. During the years ended June 30,
20X6, and 20X7, Sampson University conducted a diabetes research project financed by a
$2,000,000 gift from an alumnus. This entire amount was pledged by the donor on June 10,
20X4, although he paid only $500,000 at that date. The gift was restricted to the financing of this
particular research project. During the two-year research period Sampson’s related gift receipts
and research expenditures were as follows:How much gift revenue should Sampson report for
the year ended June 30, 20X7?a. $0b. $800,000c. $1,100,000d. $2,000,0003. On January 2,
20X6, Tim Brooks established a $500,000 trust at Wyndham National Bank, the income from
which is to be paid to Mansfield University for general operating purposes. The Wyndham
National Bank was appointed by Brooks as trustee of the fund. What journal entry is required on
Mansfield’s books?4. The carrying value of the Annuities Payable account of a collegea.
Should be adjusted to reflect changes in actuarial assumptions such as life expectancies or
yield estimates.b. Should be adjusted only for benefit payments made and investment income
earned.c. Must be adjusted annually to the present value of the required payments.d. A and
c.Questions 5, 6, and 7 are based on the following scenario:Assume that a wealthy alumnus
donated $1 million to Chavis University to provide loans to qualifying students. Though not
required by the donor, the university’s Board of Trustees voted to supplement the initial
establishment of the loan fund with $500,000 of the university’s own unrestricted resources.
Further assume that any interest earned on the loan funds is to be added to the underlying
principal of the fund and that both the original principal and that from earnings may be loaned.5.
What amount of the principal would be reported in GAAP-based financial statements as assets
restricted for loans on the date of donation?a. $0b. $500,000c. $1,000,000d. $1,500,0006. What
amount of revenues would be reported in GAAP-based financial statements on the date of
donation?a. $0b. $500,000c. $1,000,000d. $1,500,0007. How would this loan fund be reported
in the net position classifications?a. As nonexpendable restricted net position, $1,000,000, and
unrestricted net position, $500,000b. As expendable restricted net position, $1,000,000, and
unrestricted net position, $500,000c. As nonexpendable restricted net positiond. As expendable
restricted net positionQuestions 8, 9, and 10 are based on the following scenario:Steines
College, an institution considered to be governmental in nature, had the following events occur
during the year:• Tuition scholarships of $45,000 were granted during the year and $7,500 of
tuition waivers were granted.• An alumnus donated land valued at $750,000 for the new
administration building that is planned for next year.• Student aid from unrestricted resources
was paid to qualifying students in the amount of $300,750.8. How will the tuition scholarships
and waivers be reported on the college’s operating statement?a. Expenses of $7,500 will be
reported for the waivers, and $45,000 will be reported as a revenue deduction for the
scholarship allowances.b. Expenses of $52,500 will be reported.c. Revenue deductions of

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