Colleges and Universities Will Report Tuition Waivers as Either a Contra-Revenue

question 7

True/False

Colleges and universities will report tuition waivers as either a contra-revenue account or an expense, depending on the purpose for which the waiver is given.

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Definitions:

Depreciation

The allocation of the cost of a tangible asset over its useful life, reflecting its loss of value over time.

Supplies Expense

Costs associated with the consumable items used during a company's operations over an accounting period.

Journalized

The process of recording transactions in a company's journal as part of the accounting system.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjusting entries have been made, verifying the equality of debits and credits.