How should state appropriations to a state universoty choosing to report as engaged only in business-type activities be reported in its statement of revenues?

Respuesta :

Answer: Non-Operating revenues

Explanation:

Such an activity will be recorded as a non-operating revenue in a proprietary fund in the university as these funds record revenues and expenses and will differentiate between operating revenues and non-operating revenues.

This is a nonoperating revenue as it is considered a nonexchange transaction where a government department or agency gives resources to another department or agency and mandates that they do something specific with it without expecting anything equal in return.  

ACCESS MORE
EDU ACCESS
Universidad de Mexico