The City of Milan Was Notified That It Had Been

question 53

Multiple Choice

The city of Milan was notified that it had been approved for a state government grant in the amount of $1,000,000 to help finance its new city jail.The money from the grant will be received later in the current fiscal year.The journal entry to record this transaction will include

• A)A credit to Other Financing Sources upon notification.
• B)A credit to Revenues when all eligibility requirements are met.
• C)A credit to Revenues upon receipt of the money from the state.
• D)A credit to Other Financing Sources upon receipt of the money from the state.

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Definitions:

Dividends Declared

A formal announcement by a company's board of directors to pay dividends to shareholders, specifying the amount and payment date.

Declaration Date

The date on which a company's board of directors announces the issuance of a dividend to its shareholders.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing the ownership interest of shareholders.