According to NACUBO guidelines, what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30?
A) Recognize the entire amount of revenues and expenses in the year in which the summer term is predominantly conducted.
B) Recognize the entire amount of revenues and expenses in the year in which the summer term began.
C) Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises.
D) Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred.

Question

Quizplus · Accepted Answer

Because accrual accounting is used, the tuition revenue and expenses are split between the two periods that summer school covers.

According to NACUBO Guidelines, What Is the Correct Treatment for Recognizing