On January 1,Acme College Received $1,200,000 in Unearned Tuition Revenue

question 182

Multiple Choice

On January 1,Acme College received $1,200,000 in Unearned Tuition Revenue from its students for the spring semester,which spans four months beginning on January 2.What amount of tuition revenue should the college recognize on January 31?

• A)$300,000
• B)$600,000
• C)$800,000
• D)$900,000
• E)$1,200,000

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Definitions:

Closing Entries

At the close of an accounting period, transactions are documented to move balances from temporary to permanent accounts.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.

Income Statement

A financial statement that presents the revenues, expenses, and profits or losses of a company over a specified period, typically a quarter or year.

End-of-Year Spreadsheet

A document summarizing financial and accounting information at the conclusion of the fiscal year, aiding in analysis and decision-making.