How Would Estimated Uncollectible Tuition and Fees Be Reported on the Financial

question 9

Multiple Choice

How would estimated uncollectible tuition and fees be reported on the financial statements of a university?

• A) It would be reported as part of net revenue by a public university.
• B) It would be reported as an operating expense by a public university.
• C) It would be reported as an operating expense by a private university.
• D) Both A and C are correct methods of reporting estimated uncollectible tuition and fees.

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Definitions:

Transaction

Any business event that generates data worth capturing and storing in a database.

Knowledge

Information, understanding, and skills acquired through experience or education; the theoretical or practical understanding of a subject.

Wisdom

The quality of having experience, knowledge, and good judgment.

TPS

Transaction Processing System; a type of information system that collects, stores, modifies, and retrieves the transactions of an organization.