A local government was awarded a federal grant in the amount of $1,200,000 to provide for a summer employment program for young people.The grant was a reimbursement grant and was awarded on April 30,2014.The local government expended the resources as follows: June,2014,$440,000; July 2014,$400,000; August,2014,$360,000.The federal government provided the funds the following months.The local government would recognize revenues for the fiscal year ended June 30,2014 in which amount?

Question

Quizplus · Accepted Answer

The local government would recognize revenues of $440,000 for the fiscal year ended June 30, 2014, as it is a reimbursement grant and only the expenses incurred by that date can be recognized as revenue.

A Local Government Was Awarded a Federal Grant in the Amount