The NACUBO Financial Accounting and Reporting Manual Treats Estimates of Uncollectible

question 58

Multiple Choice

The NACUBO Financial Accounting and Reporting Manual treats estimates of uncollectible student accounts as:

• A) A reduction in tuition and fee revenue
• B) Bad debt expense
• C) Either bad debt expense or a reduction in tuition and fee revenue as long as the policy is consistently applied
• D) None of the above; colleges and universities must use the direct write off method

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Definitions:

Cause of Action

A legal right or claim that allows an individual to bring a lawsuit against another party.

Expensive Computer

High-cost computing device typically offering advanced capabilities and specifications.

Lease Assignment

The transfer of lease rights and obligations from the original tenant to another party.

Renewal Term

The period for which a contract or agreement, such as a lease or license, is extended beyond its original term.