Final answer:
The claim that a tuition waiver for a graduate assistant is treated as compensation expense is false; such waivers are commonly classified as scholarships or fellowships for tax purposes.
Step-by-step explanation:
The statement that a tuition waiver for a student who works as a graduate assistant is treated as compensation expense is false. Generally, in the context of accounting and tax regulations, a tuition waiver received by a graduate student who is employed by the institution as a teaching or research assistant may not be considered taxable income, and thus not treated as a compensation expense. Instead, it's often categorized as a scholarship or fellowship grant, which is usually tax-free as long as certain conditions are met, such as the funds being used for tuition and related educational expenses.