What has to occur for a special revenue fund to satisfy the eligibility requirement of a reimbursement-type federal grant, under GASB Statement 33?

A) Only after work is completely finished for the project.

B) When a plan for use of the funds has been developed and approved.

C) Only as qualified expenditures are incurred.

D) When the grant is first approved by the granting agency.

Question

Business

Claire Ortiz

31 January, 21:17

What has to occur for a special revenue fund to satisfy the eligibility requirement of a reimbursement-type federal grant, under GASB Statement 33?

A) Only after work is completely finished for the project.

B) When a plan for use of the funds has been developed and approved.

C) Only as qualified expenditures are incurred.

D) When the grant is first approved by the granting agency.

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Answers (1)

Know the Answer?

Jamiya · Answer 1

The correct answer is C

Explanation:

GASB 33, defines the shared derived tax revenues, which should follow the rules for government or voluntary mandated transactions that are non - exchange transactions. This states that the local governments should acknowledge the revenues when all the applicable requirements of eligibilty have been met.

In order to occur the special revenue fund in order to satisfy the requirement under GASB 33, is that only the qualified expenditures are to be incurred.