Assume That a Private University Collects Tuition and Fees at the Beginning

question 11

Multiple Choice

Assume that a private university collects tuition and fees at the beginning of summer school,in which two weeks are offered in the first fiscal year and the remaining six weeks are offered in the second fiscal year.According to the approach recommended by the National Association of College and University Business Officers (NACUBO) ,the university would:

• A)record the collections as a debit to Cash and a credit to Deferred Revenue for the entire amount of the collections.
• B)record the collections as a debit to Cash and a credit to Restricted current revenue for the entire amount of the collections.
• C)account for the entire tuition and fees as revenue in the first fiscal period.
• D)recognize revenue in the first fiscal period for two-eighths of the tuition and fees and record six-eighths of the collections as a deferred revenue.

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Definitions:

Quebec Acts

Legislative acts of the British Parliament in 1774 intended to provide a framework for the governance of the Quebec Province, including religious freedom for Catholics and restoration of French civil law.

Representative Government

A system of government in which public policies are made by officials selected by the voters and held accountable in periodic elections.

British Concepts

Ideas, philosophies, or principles that originate from or are associated with Great Britain, encompassing a wide range of fields including law, governance, and social norms.

American Revolution

The period of political turmoil and military conflict between 1775 and 1783, in which the Thirteen Colonies gained independence from Great Britain.