"Tuition and fees should be recorded as revenues of colleges and universities even though they must be reported net of tuition refunds, scholarships, and fellowships." Do you agree or disagree with this statement? If you disagree, explain how refunds, scholarships, and fellowships should be recorded.
What will be an ideal response?
Agree. All colleges and universities should recognize revenues on the accrual basis. Under both FASB and GASB standards, gross tuition and fees should be recorded as revenue even though some of the revenue will be offset by tuition waivers, scholarships, and fellowships. Refunds of tuition or fees are charged directly against the Tuition and Fees account.
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