Which of the Following Is True

question 26

Multiple Choice

Which of the following is true?

• A) Tuition and fees charged are included in income and the fees waived for graduate assistants are expensed.
• B) Scholarship allowances for which no services are required are expensed.
• C) Fees waived for graduate assistantships for which services are required are deducted directly from tuition revenue.
• D) Revenues for summer sessions are recorded in deferred revenues and recorded as revenue when the semester ends.

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Definitions:

Disposable Income

The disposable income households have for expenditures and savings, post-income taxation.

C + I

A formula component in macroeconomics representing total private consumption (C) plus total private investment (I).

MPS

The marginal propensity to save, which is the fraction of an additional unit of income that is saved rather than spent.

Expected Rate of Profit

The anticipated return on investment, representing the gain or loss compared to the initial investment amount.