What Is the Basis of Accounting for a Private College

question 97

Essay

What is the basis of accounting for a private college or university and what are the principal sources of reporting standards?

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Definitions:

Bills Receivable

Financial documents representing money that others owe to an individual or business, expected to be paid within a short period.

Current Liabilities

Financial obligations or debts a company is required to pay within one year or within its normal operating cycle.

Inventories

Quantities of goods or materials on hand or in process of production for sale, including raw materials, work-in-progress, and finished goods.

Net Income

The total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue; also known as net profit or net earnings.