The majority of higher education institutions utilize a system of fund accounting to account for their activities. Which of the following is not a reason why fund accounting is utilized:

Which of the following is a benefit provided by budgeting:

Generally Accepted Accounting Principles (GAAP) require colleges and universities to account for activities using accrual basis accounting. Under this method of accounting, revenues are recognized when:

The budget is a political instrument.

True/False. Failure to distinguish between base budget impacts and one-time budget impacts is a common budgeting error in the Higher Education environment.

Which of the following best describes the historical tuition model for resident students at public higher education institutions:

Which of the following is not currently a mandate that higher education must comply with?

Generally Accepted Accounting Principles (GAAP) requires colleges and universities to account for expenditures using the accrual basis accounting. Assume a University contracts with an electronic publishing firm to deliver electronic journals over a three year period and pays the entire cost at the beginning of the contract. When would the expenses be recognized under the accrual basis of accounting?

The accrual basis of accounting has no impact on when revenues and expenditures are recognized for accounting purposes and is therefore not relevant when managing fiscal year activity in relation to budget.

It is important for financial managers to fully understand the requirements relating to the funds in which their accounts reside.