According to the National Association of College and Business Officers,scholarship discounts and allowances paid by institutional funds:
A) Are included in tuition revenue and recorded as an expense.
B) Are not included in tuition revenue but are included as an "other source".
C) Are reported as a reduction of revenue by directly reducing the revenue account or a contra- revenue account.
D) Are reported as an adjustment to tuition revenue in the government-wide statements.

Question

Quizplus · Accepted Answer

Scholarship discounts and allowances are reported as a reduction of revenue by directly reducing the revenue account or a contra-revenue account. This is because they are a type of financial aid that reduces the amount paid by the student, and therefore reduce the revenue received by the institution.