For the year ended June 30,20X9,a university assessed its students a total of $4,000,000 for tuition and fees.Included in this amount was $300,000 of tuition remissions awarded to graduate teaching assistants,and $150,000 of scholarships awarded to undergraduate students.Tuition and fees totaling $3,550,000 were collected during the year ended June 30,20X9.What amount should be reported in the unrestricted fund as net revenue from tuition and fees for the year ended June 30,20X9?
A) $4,000,000
B) $3,550,000
C) $3,700,000
D) $3,850,000

Question

Quizplus · Accepted Answer

The net revenue from tuition and fees should exclude tuition remissions and scholarships. Therefore, $4,000,000 - $300,000 (tuition remissions) - $150,000 (scholarships) = $3,550,000. However, since the question asks for net revenue, the correct amount is $3,850,000, which is $4,000,000 minus only the $150,000 scholarships, as tuition remissions are not considered a reduction in revenue.

For the Year Ended June 30,20X9,a University Assessed Its Students