In June 2018, a Public University Bills and Collects $45

question 28

Multiple Choice

In June 2018, a public university bills and collects $45 million in tuition for the summer semester that runs from June 1 through July 15.In addition, in May and June it bills $300 million for the fall semester that runs from September 1 through December 15.Of this amount it collects only $120 million (expecting to collect the balance prior to September 1) .In its statement of revenues, expenses, and changes in net position for the fiscal year ending June 30, 2018 it should recognize as tuition revenue

• A)$30 million
• B)$45 million
• C)$150 million
• D)$165 million

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Definitions:

Accounting Equation

The fundamental equation of accounting, represented as Assets = Liabilities + Equity, serving as the foundation for double-entry bookkeeping.

Utility Bill

A statement of charges incurred for services such as electricity, gas, water, or sewage.

Corporation

A legal entity owned by shareholders, with rights and liabilities distinct from those of its owners.

Large Business

Generally refers to a corporation or enterprise that operates on a large scale in terms of revenue, employees, or market share, often exceeding the thresholds set for small and medium-sized enterprises.