How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

Dear Accountant, I would like to check with the GAAP

Customer Question

Dear Accountant,
I would like to check with the GAAP standard about the deferred revenue. For example, assuming a school has the fiscal year ended June 30, 2016. If a school has a term from May 1 to July 31, 2016, and receive all tuition of $10,000 in advance. Is is possible if the management to recognize the 100% of the fees received of $10,000 in FY 15-16 because the school term includes the period from May 1 to June 30, 2016? Or we must prorate and classify part of the cash receipts as deferred revenue, according to the GAAP standard.
Submitted: 13 days ago.
Category: Tax
Expert:  Megan C replied 13 days ago.

Thank you for your question. My name is ***** ***** I will be happy to help you today :-)

Expert:  Megan C replied 13 days ago.

This depends on if the taxpayer is cash basis or accrual basis for tax purposes. They can still have accounting using GAAP and be a cash basis taxpayer; If it's a school, more likely than not they will be accrual basis and will record revenues when earned. Also, the tax and book year end can be different so that comes into play as well.

Related Tax Questions