Question

Imagine that you work in the accounting department of a university and your boss has asked you to explain components of revenue, expenses, and changes in net asset that are reported on the university’s statement of revenues. Respond to the following in a minimum of 175 words: Discuss at least two unique situations or transactions that you may encounter. Describe any circumstances the entity may engage in activities that result in Unrelated Business Income Tax (UBIT).

Answer 1

Answer:

Revenues and Expenses:

An income statement might be partitioned into two essential sections:Revenue and Expenses.

Incomes/Revenues represent sums earned and acknowledged or feasible. Basic revenue accounts incorporate sales and administration incomes. Note that contra-revenue accounts likewise exist, for example, sales discounts.

Costs/Expenses, conversely, represent costs brought about during the period. Noticeable business accounts incorporate cost of goods sold and utilities

The essential source of income and, in this manner, the primary circumstance one would almost certainly experience when studying a university's statement of revenues, costs, and changes in net asset is tuition. At the point when understudies enlist, the tuition income is recorded and a receivable is set up. At the point when the understudy makes a tuition payment, the receivable is diminished and money is increased.

Filtering the statement and finding working costs, we would doubtlessly discover compensations, wages, and advantages in a noticeable position. Given the enormous number of workforce and staff required to keep up a college/university, this is a huge cost on most college's books. Toward the end of a predetermined timeframe, the salaries, wages, and advantages earned by representatives is accumulated by expanding the expense account and it