If a university waives tuition charges for children of its faculty and staff, no revenues are recognized.

Question

Quizplus · Accepted Answer

When a university waives tuition for children of its faculty and staff, it is providing a form of compensation or benefit. This waived tuition is considered a non-cash benefit and can be accounted for as an expense for the university and potentially as income for the faculty or staff member. The university may recognize the value of the waived tuition as both an expense (benefit expense) and revenue (tuition revenue), depending on accounting policies and applicable accounting standards.

If a University Waives Tuition Charges for Children of Its