Final answer:
The authoritative standards for private universities are set by the FASB, and these institutions use the accrual basis of accounting, making the correct answer A) FASB, Accrual.
Step-by-step explanation:
Private universities follow the authoritative standards of the Financial Accounting Standards Board (FASB) and use the accrual basis of accounting. Therefore, the correct answer to this question is A) FASB, Accrual. The FASB establishes accounting standards for private sector organizations in the United States, including private universities.
The accrual basis of accounting records revenues when earned and expenses when incurred, regardless of when the cash is exchanged, providing a more accurate picture of an entity's financial position. This is in contrast to the Governmental Accounting Standards Board (GASB), which sets standards for state and local government entities, and the modified-accrual basis of accounting, which combines elements of both accrual and cash accounting.