Assume That a Private University Collects Tuition and Fees at the Beginning

question 11

Multiple Choice

Assume that a private university collects tuition and fees at the beginning of summer school,in which two weeks are offered in the first fiscal year and the remaining six weeks are offered in the second fiscal year.According to the approach recommended by the National Association of College and University Business Officers (NACUBO) ,the university would:

• A)record the collections as a debit to Cash and a credit to Deferred Revenue for the entire amount of the collections.
• B)record the collections as a debit to Cash and a credit to Restricted current revenue for the entire amount of the collections.
• C)account for the entire tuition and fees as revenue in the first fiscal period.
• D)recognize revenue in the first fiscal period for two-eighths of the tuition and fees and record six-eighths of the collections as a deferred revenue.

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Definitions:

Human Dignity

The inherent worth of all individuals, which entitles them to be treated with respect and fairness.

Corporate Culture

The shared values, beliefs, attitudes, and practices that characterize an organization and guide its employees’ behavior.

Cultural Relativism

The belief that there is no one right way to behave; ethical behaviour is determined by its cultural context.

Ethical Standards

Principles that govern the conduct of individuals and organizations, ensuring actions are morally right and in accordance with accepted social norms.