Author Question: A state provides a city with a grant of 500,000 for a special meals for the homeless program. The ... (Read 275 times)

09madisonrousseau09 · **on:** Jul 5, 2018

A state provides a city with a grant of 500,000 for a special meals for the homeless program. The city will receive payment from the state within 30 days of incurring eligible expenditures for homeless people.

When should the city recognize revenues under this grant?
a. when it receives the cash payments from the state
b. at the end of the grant, when all expenditures have been incurred
c. when it sends bills to the state
d. when it incurs expenditures under the grant

Question 2

An agency makes an internal preliminary request for the purchase of 75,000 of equipment and supplies with an anticipated cost of 10,000 . The budgetary entry made by the agency would be

Debit Credit

A. Expenditures
Capital Assets
Appropriations 10,000
75,000

85,000
B. Allotments Realized Resources
Commitments 85,000
85,000
C. Appropriations
Commitments 85,000
85,000
D. Appropriations
Allotments 85,000
85,000