Chapter 19, Problem 19.1Q

To determine

Accounting for expenses: all the expenses are recognized on accrual basis in private universities and colleges. Expenses can be grouped under two groups as educational and general expenses group and auxiliary expenses group.

In educational expenses group expenses for instruction of courses, research, supplies, academic support, student service and student aid expenses such as scholarships fellowships tuition remissions and student grants are recorded.

To explain:how is tuition scholarships reported by private colleges and universities.

Answer to Problem 19.1Q

Tuition scholarships are included in revenue for the period in order to measure full revenue, if university requires employment type work for tuition scholarships, then they are also shown in expenses and it is also recorded as revenue reduction item when no employment type work is required.

Explanation of Solution

The above answer can be explained as, tuition is a major source of revenue for the private universities and colleges hence tuition scholarships are also shown in revenue to determine total revenue and later expensed out based on amount paid when university require employment type work is required for receipt it is shown in expenses.