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 term is predominantly conducted.
B) Recognize the entire amount of revenues and expenses in the year in which the term began.
C) Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred.
D) Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises.

Question

Quizplus · Accepted Answer

According to NACUBO guidelines, the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30 is to apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises. This means that revenues and expenses should be recognized based on the percentage of the term that occurred in each fiscal year. This method provides a more accurate representation of the financial performance of the institution and aligns with generally accepted accounting principles (GAAP).

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