Unrestricted Grant Revenues with a Time Requirement Should Be Recognized

question 43

Multiple Choice

Unrestricted grant revenues with a time requirement should be recognized

• A) when the award is announced.
• B) when the cash is received.
• C) in the period in which the grant is required to be used.
• D) when expenditures are recognized on grant-related activities.

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Definitions:

Influence

The ability to impact the personality, growth, or actions of an individual or an entity, or the impact in question.

Foreign Subsidiary

A company situated in a different country from its parent company and controlled by the parent company.

Functional Currency

The currency of the primary economic environment in which an entity operates and generates cash flows.

Bond Interest Expense

The cost incurred by an entity for borrowing funds through bond issuance, payable to bondholders as interest.