Mark Is an Accounting Major at a Private University

question 29

Essay

Mark is an accounting major at a private university.His goal is to go to graduate school to obtain the education and appropriate credits necessary to become a certified public accountant.Mark's goals are well-known to his instructors and to the administration,who are also aware that Mark's parents and grandparents are CPAs,as are his older brothers and sisters.As Mark enters his junior year,and after paying his tuition and room and board fees in full,his school loses its regional accreditation,making any degree issued by the school essentially worthless.A worthless degree will not be recognized by graduate schools and will not be recognized by state accounting boards.When Mark demands a refund of his tuition and fees,the school refuses,claiming that it will still provide classes and knowledge.On what grounds,if any,can Mark have the contract terminated and receive a refund?

Distinguish between capital and revenue expenditures in the context of fixed assets.

Identify the proper classification of assets on the balance sheet.

Recognize the principles and accounting treatment for depreciation of fixed assets.

Differentiate between the methods of depreciation and calculate depreciation expense.