Question

How do the three major financial statements of a public college or university differ from those of a private not-for-profit college or university?

Answer 1

Answer)

1)The cash flow statements of Public collage or university have 4 categories namely Operating,capital financing,non capital financing and investing where as private non profit organisation have as usual cash flow statements namely Operating,financing and investing.

2)Private non profit college or university have to follow the provisions of FASB statement no 17 in preparation of financial statement which need not be followed by public college or university.

3)Public collage or university can be expected to exercise the GASB statement no 34 option that permits them to account for their activities in enterprise which is not available for Private college or university.

answered by: anonymous