Culver City College, a Public College, Has a 10-Week Summer $\$ \quad 100,000\quad \$ \quad 900,000$

question 30

Multiple Choice

Culver City College, a public college, has a 10-week summer session that starts on June 25, 2020, so that one week is held during FY 2020 and the other nine weeks meet during FY 2021. Tuition and fees in the amount of $1,000,000 were collected from students for classes to be conducted in this session. What amount should Culver City College recognize as unrestricted revenue in each of the years ended (FYE) June 30, 2020 and June 30, 2021?           
A. $\$ \quad 100,000\quad \$ \quad 900,000$
B.
C.
D. $\$ \quad 500,000 \quad \$ \quad 500,000$

• A) Choice A.
• B) Choice B.
• C) Choice C.
• D) Choice D.

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Definitions:

Future Income

Expected earnings or revenue that an individual or business anticipates receiving in the future.

Interest Rate

The percentage charged on the total amount of borrowed money or paid on saved or invested capital.

Interest Rate

The part of a loan that is taken as interest from the borrower, customarily presented as an annual percentage of the still unpaid loan.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specific rate of return.