Ask Question
11 April, 05:03

A state provides a city with a grant of $500,000 for a special "meals for the homeless" program. The city will receive payment from the state within 30 days of incurring eligible expenditures for the program. The city's policy is to consider "available" any amounts collected no more than 60 days into its next fiscal year. When should the city recognize revenues under this grant?

+2
Answers (1)
  1. 11 April, 06:22
    0
    When it incurs expenditures under the grant

    Explanation:

    According to the revenue recognition principle, the revenue is recognized when it is earned plus in this question the matching principle is also applied that refers that when revenue is recognized so at the same time the expenditure should also be recorded i. e on same period the revenue and the expenditure should be matched.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A state provides a city with a grant of $500,000 for a special "meals for the homeless" program. The city will receive payment from the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers