[lacpa2012]

A university received $4,000 in tuition revenue for year 1. Also, the university offered $500 in scholarship but had to refund $200 for cancelled classes. The university would record gross revenue for tuition of:

1) 3,800

2) 4,000

3) 4,300

4) 4,500

The answer is 4,300=4000 tuition revenue +500scholarship-200refund

Why scholoarship is included as a revenue? I thoughout it should be recorded as an expense. Please HELP!

[oneFREAKINGpoint]

Because they still offered services on those classes that were paid for with a scholarship. It washes out.

[lacpa2012]

That makes sense. You're a lifesaver!!!

[Author]

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