Explain How Certain Transactions That Traditionally Were Reported as Restricted

question 60

Essay

Explain how certain transactions that traditionally were reported as restricted by private universities will now be categorized as unrestricted exchange transaction.Describe how they will be accounted for per FASB 116.

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Definitions:

Moral Hazard

A situation in which one party engages in risky behavior or lacks incentive to guard against risk because they are protected by an insurance or other agreement.

AFLAC

An American insurance company that provides supplemental insurance to help cover expenses health insurance doesn't.

Triple Jump

An athletic event where the competitor makes a hop, a step, and then a jump in sequence.

Moral Hazard

Moral hazard occurs when an individual or entity has a tendency to take more risks because the negative consequences of those risks will be partially or fully borne by others.