Paul City Received Payment of Two Grants from the State

question 4

Short Answer

Paul City received payment of two grants from the state during its fiscal year ending September 30, 2016. Grant A can be used to cover any operating expenses incurred during fiscal 2017. Grant B can be used at any time to acquire equipment for the city's fire department. Should the city report these grants as grant revenues or deferred inflows in its governmental fund financial statements for fiscal 2016?

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Definitions:

Paralegal Certificates

Certifications awarded upon completing specific educational courses that prepare individuals for careers as paralegals.

Associate's Degrees

Undergraduate academic degrees awarded by colleges and universities upon completion of a course of study lasting two years.

NALA

The National Association of Legal Assistants, a professional organization that provides continuing education and professional certification to paralegals.

NFPA

Stands for National Fire Protection Association, a global nonprofit organization dedicated to eliminating death, injury, property, and economic loss due to fire, electrical, and related hazards.