Fees Waived by the an Educational Institution in Return for Services

question 24

Multiple Choice

Fees waived by the an educational institution in return for services to be provided are accounted for:

• A) As a reduction in tuition revenue by directly reducing the revenue account or a contra-revenue account.
• B) As an adjustment to tuition revenue in the government-wide statements.
• C) As included in tuition revenue and expensed.
• D) By deducting the waived fee from tuition revenue before it is recorded.

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Definitions:

Tax Revenue

Funds accumulated by governments as a result of taxation.

Inelastic

Describing demand that does not change significantly when the price of a good or service changes.

Excess Burden

The cost to society created by market inefficiency, particularly through the misallocation of resources or distortions in the market.

Excess Burden

The cost to society created by market inefficiency, often associated with the distortionary effects of taxes and subsidies.