Measuring Operations: An Analysis of the Financial Statements of U.S. Private Colleges and Universities
32 Pages Posted: 13 Mar 2003
Date Written: March 2003
As events in the business sector have highlighted, companies can play by the rules and yet produce misleading financial statements. This study examines the nongovernmental organizations that provide a substantial portion of higher education in the United States. We seek to determine whether private colleges and universities take advantage of the discretion available to them under accounting and auditing standards by presenting an operating measure in their statement of activities. We find that nearly 60 percent of schools report an operating measure but the items included or excluded from operations vary widely.
Keywords: Accounting, Operating Measure, Statement of Activities, Higher Education
JEL Classification: M41, M48
Suggested Citation: Suggested Citation