Recognize tuition revenue after a defined withdrawal


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Schools that charge tuition (colleges as well as independent K-12 schools) generally recognize tuition revenue after a defined withdrawal cutoff has been passed. For example, if the student withdraws after the third week of the semester, there is no refund of tuition. If the student has not paid the entire semester's tuition, then the remaining balance is due. Does this seem reasonable to you? The school has not taught the student and yet the school recognizes the revenue.

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Accounting Basics: Recognize tuition revenue after a defined withdrawal
Reference No:- TGS02060955

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