"Tuition and Fees Should Be Recorded as Revenues of Colleges

question 20

Essay

"Tuition and fees should be recorded as revenues of colleges and universities even though they must be reported net of tuition refunds, scholarships, and fellowships." Do you agree or disagree with this statement? If you disagree, explain how refunds, scholarships, and fellowships should be recorded.

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Definitions:

Future Value Factors

Numerical factors used to calculate the future value of an investment after accounting for interest rates and time periods.

Reciprocals

Mathematical expressions that represent the inverse of a given number or quantity, such that the product of a number and its reciprocal equals one.

Present Value

The present calculation of a future monetary amount or series of cash inflows, using a particular return rate.

Cash Flows

The sum of all money transfers into and from a business, significantly altering its capacity to handle liquid assets.