Read:
Rupple:
Chapter 23, “Educational and other Governmental Entities”
Here is the information for the book :

Site URL: http://techbus.safaribooksonline.com/?uicode=dodarmyall
Username: info@imt2icore.com
PW: Tr34uKDB
The book is located in “Favorites & Folders”
Complete:
Hoyle CPA:
Not-for-Profit Organizations (32)
Financial Statement Structure (14)
Donations (18)
Wiley CPA Vol. 2:
Module 22, “Not-for-Profit Accounting”
Review:
PwC:
Education/not-for-profit
Global Public Finance and Accounting Network

Wk 5 Joshua Elliott
Created by Joshua Elliott on Jun 18, 2015 12:10 AM
Question 1.
A public university receives approximately 20 percent of its revenue from state appropriations. In which category of revenues (operating or non-operating) should it report the state appropriations and why?
Answer: As required by the GASB the revenues should be categorized as non-operating revenues, this is because the intention of the revenues is to assist in covering the operating expenses for the institution
YOU’RE COMMENT:

Question 2. What are the three types of endowments? How are they presented on the financial statements of a public and a private college and university? Why board-designated (or quasi) endowments are always unrestricted?
Answer: True Endowment- (Permanently Restricted) this is an endowments in which there are stipulations put in place by the donor of which the corpus must be held inviolate, in perpetuity, and invested for the purpose of generating income which is to be spent for a specified purpose. True endowments are reported under permanently restricted assets.
Term Endowment- (Temporary Restricted) is very similar to true endowments, with the exception that after a period of time or the occurrence of a specific event, a portion of the whole donation will be given/ expected. These endowments are reported as temporarily restricted net assets.
Quasi Endowment- (Unrestricted) is a fund or funds that function as an endowment and are typically established by the institution from either the institutional funds or from a donor, with the intended purpose being to have those funds retained and / or invested instead of being expended. Because these endowments are considered resources and are used within the institution they are always unrestricted.
YOU’RE COMMENT:

Week 5 – Shirin
Question 3. What are the major categories of revenues and expenses for a health care organization? Be specific, and provide an example of each type.
Answer: Major categories of revenues are:
– Patient care revenues – Includes routine, nursing and professional services

Bad debt expenses is reported in the expense account, when the organization estimates and expects some of the bills to be uncollectible.
Contractual adjustment (which can be employee discount) is the different between the established rate and the payment required from an individual. Contractual expense is once again recorded as an expense, but the original revenue is not deducted, and recorded at gross amount.
Conclusion:
Patient revenue is accounted at full established rates (Gross amount)
LESS:
Contra-revenue account which includes bad debt and contractual adjustment
Result: Net Patient care revenue
YOU’RE COMMENT