How Should Receipt of the Grant Be Recorded

question 58

Multiple Choice

How should receipt of the grant be recorded?

• A)Debit Cash; Credit Revenue from contributions (unrestricted fund)
• B)Debit Cash; Credit Revenue from contributions (temporarily restricted fund)
• C)Debit Cash; Credit Revenue from contributions (permanently restricted fund)
• D)No entry required until the grant funds are spent.

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Definitions:

Shares Outstanding

Refers to the total number of shares of a company that are currently owned by shareholders, including shares held by institutional investors and restricted shares owned by the company’s officers and insiders.

Market Price

The current market rate at which one can purchase or sell a service or asset.

Acquisition

The procedure through which a business buys out most or all shares of another business to achieve authority over it.