Fees Waived by the an Educational Institution in Return for Services

question 78

Multiple Choice

Fees waived by the an educational institution in return for services to be provided by students are reported:

• A) As a reduction in tuition revenue by directly reducing the revenue account or a contra-revenue account.
• B) As an adjustment to tuition revenue in the government-wide statements.
• C) As an expense.
• D) By deducting the waived fee from tuition revenue before it is recorded.

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Definitions:

Inflation

The pace of upsurge in the collective market prices for goods and services, decreasing the capacity to spend.

Interest Rates

The cost of borrowing money or the return on investment expressed as a percentage, typically on an annual basis.

CPI

Consumer Price Index, which measures the average change over time in the prices paid by consumers for a market basket of consumer goods and services.

Social Security Payments

These are government payments made to qualifying individuals, such as the elderly or disabled, to help support their income.