Accounting for Governmental & Nonprofit Entities 17th Edition by Jacqueline Reck,Suzanne Lowensohn,Earl Wilson

Exercise 2

For each of the following situations explain how a private and a public university would record the transaction (assume the grants are nonexchange): notification of a grant to be received in the next fiscal year; receipt of a grant with a purpose restriction; notification of a grant payable for only allowable costs related to the grant.