Where Should a Cash Grant Received to Support the Operations

question 38

Multiple Choice

Where should a cash grant received to support the operations of an Enterprise Fund be reported on that fund's statement of revenues, expenses, and changes in fund net position when it is earned?

• A) Operating revenues.
• B) Nonoperating revenues.
• C) Reduction to operating expenses.
• D) Capital contributions.

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Definitions:

Cash Discount

A reduction in the invoice price offered by a seller to encourage early payment by the buyer.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Credit Extension

Credit extension is the process by which a lender provides funds or permits a borrower to purchase goods or services now with the promise to pay in the future.

Receivables Financing

A type of financing where a company uses its accounts receivable as collateral for a loan.