A Private University Received $2,640,000 from Student Tuition and Fees

question 37

Multiple Choice

A private university received $2,640,000 from student tuition and fees for the year 20X6 summer session.The session began on May 16,20X6,and ended on July 15,20X6.The university's fiscal year end is June 30.According to the AICPA College and University Audit Guide,how should the university report the $2,640,000 of receipts in its financial statements for the year ended June 30,20X6?

• A)Current revenue of $2,640,000.
• B)Current revenue of $1,980,000 and deferred revenue of $660,000.
• C)Deferred revenue of $2,640,000.
• D)Restricted current revenue of $2,640,000.

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Definitions:

Consolidated Worksheet

A tool used in the preparation of consolidated financial statements that helps in adjusting and eliminating entries for consolidation purposes.

Investment

Assets that are purchased with the expectation that they will generate income or appreciate in the future.

Condensed Balance Sheets

A simplified financial statement showing the summary of a company's financial position, including assets, liabilities, and equity at a specific point in time.

Excess Consideration

The amount by which the price paid for an acquisition exceeds the total fair value of its identifiable net assets.