Question

Scholarships (tuition discounts) provided to students where no service is required:

) Are included in tuition revenue and recorded as an expense.

B) Are reported as a reduction of revenue by directly reducing the revenue account or increasing a contra- revenue account.

C) Are not included in tuition revenue but are included as an “other source”.

D) Are reported as an adjustment to tuition revenue in the government-wide statements.

Answer 1

create a contra income account to track the scholarships that you’ve granted to students. This account will hold a debit balance as opposed to a credit balance in a typical income account

group the income account that you use to record tuition payments and your contra income account for scholarships that you’ve given to students within your Chart of Accounts. Then, on reports, if you choose the option to sub-total by group, this will net the two income accounts.

So Option B is Correct that

Are Reported as a Reduction of revenue by directly Rreducing the Revenue Account or Increasing the Contra Revenue Account