Culver City College, a public college, has a 10-week summer session that starts on June 25, 2020, so that one week is held during FY 2020 and the other nine weeks meet during FY 2021. Tuition and fees in the amount of $1,000,000 were collected from students for classes to be conducted in this session. What amount should Culver City College recognize as unrestricted revenue in each of the years ended (FYE) June 30, 2020 and June 30, 2021?
A. $\$ \quad 100,000\quad \$ \quad 900,000$
B.
C.
D. $\$ \quad 500,000 \quad \$ \quad 500,000$

Question

Culver City College, a public college, has a 10-week summer session that starts on June 25, 2020, so that one week is held during FY 2020 and the other nine weeks meet during FY 2021. Tuition and fees in the amount of $1,000,000 were collected from students for classes to be conducted in this session. What amount should Culver City College recognize as unrestricted revenue in each of the years ended (FYE) June 30, 2020 and June 30, 2021?           
A. $\$ \quad 100,000\quad \$ \quad 900,000$
B. 
C. 
D. $\$ \quad 500,000 \quad \$ \quad 500,000$

Quizplus · Accepted Answer

Culver City College should recognize $100,000 as unrestricted revenue for FY 2020, as classes are only held for one week during that fiscal year. The remaining $900,000 should be recognized as unrestricted revenue for FY 2021 when the other nine weeks of classes are held. Therefore, the correct answer is A) Choice A.

Culver City College, a Public College, Has a 10-Week Summer $100,000$900,000\$ \quad 100,000\quad \$ \quad 900,000$100,000$900,000

Culver City College, a Public College, Has a 10-Week Summer $\$ \quad 100,000\quad \$ \quad 900,000$