A Private University Offers Graduate Assistantships to Qualified Students Each

question 103

Multiple Choice

A private university offers graduate assistantships to qualified students each year.In exchange for the waiver of tuition,graduate assistants are required to assist faculty members with research and other activities.Assume a graduate assistant received a $4,000 tuition waiver for the current academic year.Based on these facts,the university should record:

• A)tuition revenues of $4,000 and expenditures of $4,000.
• B)tuition revenues of $0 and expenditures of $0.
• C)tuition revenues of $4,000 and expenditures of $0.
• D)tuition revenues of $4,000 and a reduction of tuition revenues of $4,000.

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Definitions:

Cost Center

A department or unit within an organization that does not directly add to profit but incurs costs, such as the HR department or IT support.

Investments

Assets acquired for the purpose of generating income or increasing value over time, such as stocks, bonds, or real estate.

Cost Center

A division or department within an organization that does not directly contribute to profits but incurs costs, such as customer service or research and development departments.

Profit Center

A division or segment of a company that is directly responsible for generating its own revenue and profits.