Tuition scholarships for which there is no intention of performance from the student should be classified by a private university as
A) Reductions of gross revenue to arrive at net revenue.
B) Not recognized in the financial statement.
C) Increases in expenditures.
D) Reductions of gross revenue or as expenses provided they are consistently classified in the same manner from year to year.

Question

Quizplus · Accepted Answer

Tuition scholarships without performance requirements are considered reductions of gross revenue to arrive at net revenue, as they effectively reduce the amount of tuition revenue the university expects to collect.

Tuition Scholarships for Which There Is No Intention of Performance