A contribution was received by the city for playground equipment.The contribution would not be recognized as revenues by the General Fund until the playground equipment has been purchased.

Question

Quizplus · Accepted Answer

The contribution must be used for playground equipment. This is an example of a purpose restriction, not an eligibility restriction. Under GASB standards, resources received with a purpose restriction are recognized as revenues when received. On the balance sheet the revenues would increase Fund Balance-Restricted-Parks and Recreation.

A Contribution Was Received by the City for Playground Equipment