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.

Comprehend the role and critiques of discretionary fiscal policy in stabilizing the economy.

Grasp the significance of expectations (rational and otherwise) in influencing the effectiveness of macroeconomic policy.

Evaluate the time-inconsistency problem and its implications for economic policy.

Recognize the potential GDP impacts and challenges of prolonged unemployment.

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Definitions:

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.

Cable Television

A system that delivers television programming through coaxial or fiber-optic cables directly to viewers.

Lump-Sum Payment

A one-time payment made for a particular item or service, rather than payments spread over time.