Question

on october 1, the beginning of the new term, Davis institite, a private school, recieves $168,500 in tuition for the upcoming semester, which last forur months. Davis Institutes fiscal year ends December 31 how much revenue would Davis recognize from this amout for the current year​

Answer 1

The correct answer is $126,375.

If the term is four months long and Davis institute receives $168,500 in tuition for the four months then they receive $42.125 per month. You can calculate this by dividing $168,500 by 4, which equals $42,125. Three of the months are in the first fiscal year, so 3 months worth of revenue will be allocated to that year. $42,125 x 3 = $126,375.