21.According to the rules for accounting for colleges and universities under the jurisdiction of the FASB, investments in stock with determinable fair values and all debt securities are reported at market value.
22.Under FASB standards, true endowments are classified as Permanently Restricted Net Assets.
23.Under FASB standards, quasi-endowments are classified as Unrestricted Net Assets.
24.FASB standards require private colleges and universities to present a Statement of Cash Flows.
25.FASB standards require private colleges and universities to present a Statement of Functional Expense.
26.When a private college is the recipient of a perpetual trust held by a third party, the initial contribution revenue is recorded in the permanently restricted net asset class, and income received from the trust is recorded as either unrestricted or temporarily restricted investment income, depending on the trust agreement.
27.Financial statements prepared for private colleges and universities present net assets as: unrestricted, restricted, or net investment in capital assets.
28.A charitable remainder trust and a charitable gift annuity both require a formal trust agreement.
29.An acceptable alternative to the Statement of Activities for a private college or university is to present a Statement of Unrestricted Revenues, Expenses and Other Changes in Unrestricted Net Assets and a Statement of Changes in Net Assets.
30.Under NACUBO guidelines, tuition waivers resulting from work-study programs are deducted from revenue.