How Would a Private College or University Report Its Estimate

question 22

Multiple Choice

How would a private college or university report its estimate for uncollectible tuition and fees on its statement of activities?

• A) A contra-revenue account titled Provision for Doubtful Accounts.
• B) A direct reduction of Tuition and Fees-Unrestricted.
• C) An operating expense titled Provision for Doubtful Accounts.
• D) An operating expense titled Bad Debt Expense.

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Definitions:

Imports

The goods and services purchased from other countries.

Foreign Direct Investment

An investment made by a firm or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.

U.S.

Refers to the United States of America, a country primarily located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Restaurant Chain

A set of related restaurants in different locations that are either under shared corporate ownership or franchising agreements.