With Respect to Colleges and Universities, If a Tuition or Fee

question 58

True/False

With respect to colleges and universities, if a tuition or fee reduction is an employee benefit it should be treated as a compensation expense, rather than a discount.

---

Definitions:

Periodic Rate

The rate of interest charged or earned over a shorter, specified interval of time, often related to the compounding period.

Compounded Monthly

Refers to interest on a loan or investment calculated monthly, adding to the principal sum so that each successive calculation includes the previous month's interest.

Semiannually Compounded

Interest on an investment or loan calculated twice a year.

Compounded Annually

Interest calculation method where interest is calculated on the initial principal as well as the interest accumulated over previous periods, applied once per year.