Which of the following describes the appropriate treatment of appropriations revenue by a public college or university?

Select one: a. Exchange transaction; nonoperating revenue

b. Exchange transaction; operating revenue

c. Nonexchange transaction; nonoperating revenue

d. Nonexchange transaction; operating revenue

Fitch State University receives $250,000 in grants and loans on behalf of incoming freshmen for their tuition bills. The amounts are received in advance of the semester. What journal entry will be recorded by this public university?

Select one:

a. Debit cash; credit tuition and fees revenue

b. Debit tuition and fees receivable; credit deposits held in custody for others

c. Debit cash; credit deposits held in custody for others

d. Debit tuition and fees receivable; credit tuition and fees revenue