Note: This is a Kaplan CPA Review Question
In 20X1, Ellen College, a private not-for-profit institution, received a $100,000 grant for faculty research. The grant money was not spent until 20X2. For 20X1, Ellen College should report the contribution as:
A) Temporarily restricted asset.
B) Unrestricted revenue.
C) Other operating revenue.
D) Other non-operating revenue.

Question

Quizplus · Accepted Answer

In 20X1, the grant is considered a temporarily restricted asset because it is intended for a specific purpose (faculty research) and has not yet been spent.

Note: This Is a Kaplan CPA Review Question