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Private Colleges and Universities Use Encumbrances and Report Using the Modified

question 9

True/False

Private colleges and universities use encumbrances and report using the modified accrual basis of accounting.


Definitions:

Net Price

The actual price paid for a product or service after deducting any discounts, rebates, or promotions.

Complement Method

Method of computing the net price directly, using the complement of the trade discount rate.

Trade Discounts

Discounts given to buyers that generally are based on the quantity purchased.

Net Price

The real cost incurred for a product or service once all discounts, rebates, or allowances have been subtracted.

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