The NACUBO Financial Accounting and Reporting Manual Treats Estimates of Uncollectible

question 11

Multiple Choice

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

• A) Bad debt expense
• B) A reduction in tuition and fee revenue
• 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:

Population

In statistics, the complete set of items or individuals considered for a survey or study.

Population Standard Deviation

A measure of the dispersion of all values in the entire population from the mean of the population.

Confidence Interval

A range of values that is believed to contain an unknown population parameter, calculated from a given set of sample data.

Sample Variance

A statistical measure of the dispersion of observations in a sample dataset around the sample mean.