The Following Information Applies to the Next Three Questions

question 102

Multiple Choice

The following information applies to the next three questions:
Tuition and fees for the Northern University was assessed at $22,000,000. Scholarship allowances, for which no services are required, were $1,600,000 and graduate assistantships, for which services are required, were $1,000,000.
-What is the journal entry to record the scholarship allowances?

• A) Scholarships and Fellowships Expense 1,600,000 Accounts Receivable 1,600,000
• B) Operating Revenue Deduction -Scholarship Allowances 1,600,000
• Accounts Receivable 1,600,000
• C) Operating Revenue Deduction -Scholarship Allowances 1,600,000
• Deferred Revenues 1,600,000
• D) Not recorded because it was deducted from tuition revenue before revenue it was recorded

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Definitions:

Criminal Case

A legal proceeding against an individual or organization accused of violating laws that protect the public's moral or physical welfare, resulting in penalties like imprisonment or fines.

Amicus Curiae

A "friend of the court" who, although not a party to the litigation, offers information or expertise relevant to the case to assist the court in its deliberation.

Stare Decisis

The legal principle of determining points in litigation according to precedent, meaning earlier judicial decisions are authoritative in all future cases that are substantially similar.

Prior Decisions

Legal doctrine referring to the respect and adherence to judicial decisions made in previous cases.